The sale of payment protection insurance (PPI) has come in for fresh criticism from the Competition Commission (CC).
PPI is often offered alongside unsecured loans in order to protect against the possibility of being unable to keep up repayments.
Last week the Financial Services Authority revealed the results of its mystery shopping investigation, finding problems with the sale of many PPI policies.
And now the CC has issued a report, stating: "There is little competition between providers on price and other factors, limited ability for customers to search for alternatives or switch products and a considerable point-of-sale advantage for the providers."
The body is now investigating possible ways to tackle the problems and will make recommendations in the coming months.
According to Moneyfacts.co.uk analyst Michelle Slade, consumers taking out PPI alongside an unsecured loan may be able to save money by choosing an independent provider.
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