Just how big is the rip-off?
- 23RD MAY 2007
While it’s clear from the huge amount of negative media attention that it has attracted is that the payment protection insurance sector has many problems and that consumers are getting a raw deal. The question being asked is “Just how big is the rip-off?”
Recently, Head of Market Intelligence and Retail Themes at the Financial Services Authority, Stuart King, told the “This is money” website that the period of time in which payment protection insurance policies have been incorrectly sold is over a prolonged time.
He said that the mis-selling and standards that need to be improved within the sector is the FSA’s top priority and that they are relentless when it comes to improving those standards for the consumer.
Payment protection insurance (PPI) is sold alongside credit cards, loans and mortgages to ensure that if the policyholder is out of work that their monthly credit commitments can still be met. However many have found that they have been mis-sold their policy and cannot claim on it. Other disgruntled policyholders have found out that they have been paying far too much for their cover.
So far over £1.6 million in fines has been handed out by the FSA to those firms caught out for mis-selling and this is a start. However, until the industry has a full shake up - which will happen after the finalisation of the Competition Commission investigation in 2009 – it seems that a lot of people will continue to suffer at hands of the greedy banks and lenders.
IN the meantime, if you are looking to buy payment protection insurance then shop around. Visit a standalone provider such as the ethical British Insurance. They are an independent payment protection specialist who believes in putting the consumer before huge profits. So for the cheapest quality product visit them for you policy and avoid being part of the big rip-off.
