The Office of Fair Trading has launched an investigation into payment protection insurance (PPI).
Paymentcare's managing director, Shane Craig, has welcomed the proposed market study.
However, he has expressed disappointment that the OFT has not acknowledged the difference between "the sale of regular premium PPI with prime mortgages" from other types of PPI.
Craig added: “Every mortgage adviser in the land knows that the real issue lies with the banks and loan providers that are constantly bombarding consumers with low APR deals to encourage more borrowing — but why do none of these lenders shout about the rates they charge for their PPI cover?
“By continuing to mention MPPI alongside over-priced loan PPI offered by High Street lenders, it's no wonder that there is a growing misunderstanding of the two in the minds of consumers.”
