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Egg fine underlines case for banning point-of-sale PPI, says Paymentcare.co.uk

Commenting on the latest FSA fine for PPI mis-selling handed out to lender Egg*, Shane Craig of the UK's leading independent PPI provider Paymentcare.co.uk said:

"This is yet another vindication of the Competition Commission's proposal to ban point-of-sale PPI.

"The tactics employed by Egg to shift as many PPI policies as possible are a perfect example of why borrowing and protection agreements should be kept separate.

"As the FSA has revealed, Egg, like other lenders who have also been found guilty of mis-selling PPI, has misused its advantageous position.

"Now that the mask has slipped and the true picture of this practice has been revealed, it is blindingly obvious how it has been possible for lenders to mis-treat their customers in this way.

"The sooner the Competition Commission's remedies to the PPI market are enforced the better for all concerned - consumers will no longer be paying out unnecessarily large sums for protection that may be inappropriate to their needs and lenders will no longer incur such massive fines for failing to treat customers fairly.

Paymentcare.co.uk offers a comprehensive range of cover options to suit individual needs for credit card, loan, income and mortgage payment protection. Monthly premiums for credit card policies cost just 65p per £100 of outstanding benefit for full LASU** protection.


* Egg was fined £721,000 by the Financial Services Authority for mis-selling payment protection insurance
along with credit cards - 10 December 2008

** Life, Accident, Sickness & Unemployment