Banks’ payment protection insurance sales plummet
- 18TH JUNE 2007
Payment protection insurance has left high street banks and lenders with egg on their face many time over the course of the last eighteen months, and that should come as no surprise to individuals that are aware of the nature of the complaints the Financial Services Authority has received about it from consumers. However, little were the banks to know that the worst was yet to come.
The poor reputation that payment protection insurance has gained over the past year or so has ensured that fewer people are willing to take out policies to protect themselves. Rumours of mis-selling and other such stories have definitely put individuals off, when it should in fact be the bank or lender rather than the product that has a poor reputation.
The row over payment protection insurance has in fact resulted in a loss of profits for the bank, which would have come as a big blow to them because the revenue it generated actually made up a huge chunk of their total revenue.
However, not all payment protection insurance policies should be tarred with the same brush. Policies offered by the ethical British Insurance, for example, are extremely beneficial to the customer. They cover all debts at just 20% of the cost of a policy offered by a bank. At such value, you cannot afford to be without it!
