Under-fire PPI providers' costs climbing

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Payment protection insurance providers are "rubbing salt into an already very deep wound" by upping product costs at a time when PPI is under the OFT microscope.

Research from money search engine Moneyfacts found four big-name providers, including Lloyds TSB and LV=, have all recently increased their PPI costs. Based on a loan of £5,000 over 36 months, Moneyfacts says there have been monthly increases of at least £5, and as much as £10, which, over three years, can run into several hundreds of pounds. Michelle Slade, personal finance analyst at Moneyfacts, says: “With PPI being seen as an ‘overpriced, inflexible’ product, you may have thought lenders would be reluctant to rock the boat further. “However, for many providers, the price has conti...

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