Payment Protection Insurance (PPI) designed to cover repayments of personal loansand credit cards in case of illness or job loss is to be investigated following a super complaint from Citizens Advice to OFT.

Citizens Advice has complained that the PPI is too expensive and often sold to people who don’t need it. The complaint is based on its reports from people attending Citizens Advice bureaux. It also said that the insurance policy excludes common bad backs and mental illness and bans self employed and fixed term contract employees.

OFT has expressed concerns over the choice and transparency associated with the policy. It also deters people from shopping around and looking for options.

OFT in its own right can refer the case to the Competition Commission for necessary action.