Lamport Bassitt Solicitors - Legal News - PPI ban 'could be costly for consumers'


	LATEST LATEST LEGAL NEWS ARCHIVE		LATEST NEWS & EVENTS PPI ban 'could be costly for consumers' The planned prohibition of point-of-sale payment protection insurance (PPI) could be costly for Britons, it has been claimed. According to David Kuo, editor of the Motley Fool, banks may switch their revenue stream elsewhere by simply charging "higher loan rates for everyone". The ban, which was provisionally declared by the Competition Commission, is intended as a means of preventing financial service providers from mis-selling the product to consumers when they take out a loan. It is hoped by those behind the measures that this will lead to greater competition and cheaper rates. Mr Kuo remarked: "As far as banks and lenders are concerned, the PPI part of any loan deals was really the part that made them money." He went on to suggest that if the prohibition goes ahead, some consumers may be refused loans, while those who do get credit will have to pay a higher rate of interest. Related Articles: 24/12/2010 - Older drivers 'safest in poor weather' 17/12/2010 - HSE launches web tool for risk assessments 5/10/2010 - New asbestos ruling over mesothelioma disease 20/9/2010 - Theft affects one in eight students yearly 16/9/2010 - Students being 'careless with money' More Insurance Law News