Probe into mis-selling of insurance for loans
Published 16/08/2011 | 05:00
FEARS that thousands of consumers may have been mis-sold payment protection insurance on loans have prompted Central Bank regulators to launch a probe.
The insurance is optional and supposed to protect loan repayments if borrowers lose their job or are unable to work due to illness.
But there are fears that thousands of policies have been sold to people who have been unable to make a successful claim despite losing their jobs.
The self-employed are highly vulnerable to mis-selling because it is difficult for them to make a claim. They must prove that they did not deliberately cease trading in order to get money back.
Controversy in Britain over the mis-selling of payment protection insurance has seen up to five million people refunded a total of €10bn.