According to a recent survey by MoneySupermarket.com, a quarter of the those that have it would consider cancelling their Loan Payment Protection Insurance (PPI). Plus, 6% would cancel Mortgage Payment Protection Insurance (MPPI).

These figures suggest that UK banking consumers are realising the unfair tactics that were used to sell PPI and in some cases, the uselessness of it.

Obviously, the decision to cancel an insurance should be thought about at great length but it’s fair to csay that those who have already made PPI claims for mis-selling have already decided on the value of Payment Protection Insurance

Getting money from banks and lenders is hard enough right now, never mind getting your own money back that was taken through unfair charges. But there are thousands of banking consumers across the UK currently making PPI claims because they feel they’ve been shafted by financial istitutions.

And as if the fact that you’ve made PPI payments without wanting or knowing about it wasn’t enough, the banks are now back to their old ways of paying out massive bonuses. Take Goldman Sachs for example, during the recent quarter, they dedicated 49% of revenue to paying staff, amounting to $226,000 for each of the 29,200 staff. If the bank continues to prosper for the rest of the year, employees could end up with average yearly pay of more than $900,000.

This crazy bonus and wage boosting structure can only bring us full circle back to where we were back in autumn ‘07, at the start of the credit crunch and ultimately – a recession. Have a read of this article in the Evening Standard that discusses the problems with the current banking system and shines a spotlight on some real alternatives to the way the UK does it’s banking business.

The Competition Commission has organised a consultation on the proposals for the restructuring of the Payment Protection Insurance (PPI) industry. The idea being that once the Barclays appeal is over, they can roll out the changes straight away.

Have a quick read of this article from Reuters that details the Commissions drive to make changes and push forward with making PPI a legitimate and useful addition to a borrowing (when sold properly of course).

The Competition Commission have finally come out and said that selling Payment Protection Insurance (PPI) along-side borrowings creates a lack of competition. We already know from all the PPI claims that it’s not best practice to sell PPI in this way which is why it’s being made illegal to sell PPI with a loan.

Whatsmore, by pitching a customer for PPI while they’re signing up for a loan, that customer may make a decision based on ease and convenience, rather than value for money. This is partly why lenders will have to wait 7 days from the date of agreement to pitch PPI to a loan customer.

For more about this, take a look at this article by credit card comparison site ‘CardSmart’ who discuss the sale of PPI in greater detail.