Beware the payment protection policy cross sell
- 24TH JULY 2007
The Financial Services Authority has repeatedly criticised high street banks and lenders for the way they have sold a payment protection policy to unwitting consumers. Despite their efforts to make the industry fairer for consumers, some high street banks still mis-sell policies or neglect to inform consumers of the ins and outs of the payment protection policy before they sign up.
The Financial Services Authority initially got involved in the payment protection policy industry because there were many complaints of mis-selling by consumers who felt that they were unfairly treated and even tricked into taking out the policy in some way. However, despite the ongoing investigation and the release of easy to follow sales guidelines, some high street banks and lenders are still not complying.
All consumers should be fully aware that, when they sit down with someone to take out a credit card or loan, they will be offered a payment protection insurance policy to cover the debt. They should also be aware that the cross sell will always ask questions such as how their debts would be paid should they ever find themselves out of work.
However, rather than falling victim to the cross sell, an individual should explore all of his or her options before actually taking out a payment protection policy. There are standalone policy providers, like independent payment protection provider British Insurance, who will offer a payment protection policy at around 20% of the price of a high street bank or lender and yet offer comprehensive customer service as well. Standalone providers also tend to check whether or not an individual is suited to a payment protection policy before setting it up.
