Britain's banks face a government inquiry into the sale of 20 million payment protection insurance policies (PPI) after Citizens Advice issued a 'super-complaint' against what it calls a £5bn protection racket.
The charity presented its complaint to the Office of Fair Trading (OFT) after evidence from its bureaux around the country found that PPI is "very expensive, mis-sold to people who cannot claim on it, and designed to exclude many of the most common situations that can lead to debt".
Citizens Advice is one of the few consumer bodies allowed to make formal super-complaints. The OFT is required to respond publicly within 90 days, which could trigger a formal inquiry and result in a cap on premiums and exclusions.
