Academics’ study reveals banks bundled charges for PPI
When banks bundled PPI cover with a loan as much as 17% of the total was for the PPI Newcastle University Business School and the Centre for Competition Policy at the University of East Anglia claim, the FT reports.
The highest PPI charge at 16-17% was with Capital One Bank, Britannia Building Society, The Funding Corporation and Bank of Scotland.
PPI with mutually owned building societies was about 8-9%.
10 years of exploitation
The research covered a 10-year period from January 1998 to December 2007 and was based on the cost of a £5,000 personal loan with and without PPI.
“It is surprising to see such a high level of variability in the costs of payment protection insurance,” said Dr John Ashton, study co-author from the Centre for Competition Policy at the University of East Anglia. “Clearly some firms are exploiting customers far more than others.”
