PRESS DIGEST - Financial Times - May 24

Financial Times

BANKS ACCUSED OVER LOAN COVER

Britain's biggest banks are braced for a Competition Commission ruling which is expected to accuse them of large-scale profiteering on insurance products. The Commission's ruling could force banks to raise the already soaring price of personal credit. Bankers claim that any action from the watchdog which restricts or removes their ability to sell so-called payment protection insurance could lead them to increase interest rates on loans. One banker said: "Personal loan rates have been uneconomic for a while. Rates are likely to go up if PPI is sold separately".

MIDDLE CLASS FORCED TO GO BARGAIN HUNTING

According to research carried out by the Financial Times, middle-class Britons are rushing to embrace "cheap chic" as they search for ways to live well in a downturn. Figures show a sharp increase in the number of searches for money-off vouchers, cheap holidays and discount grocers as well-heeled consumers mimic their lower-paid cousins. According to Nielsen Online data, discount retailers are also registering increased interest from households with incomes of 50,000 pounds a year or more.

NETWORK RAIL ORDERED TO IMPROVE WEST COAST SERVICE