More clarity needed says industry expert
- 21ST MAY 2007
Simon Burgess from independent specialist payment protection insurance (PPI) provider British insurance has never been one afraid to open his mouth and speak up about consumers being treated unfairly. And rightly so, especially when it’s something close to his heart, and nothing is closer than the consumer getting ripped off by unscrupulous companies for big profits.
Although the market place is now under review by the Competition Commission as well as the Financial Services Authority doing their own independent research in to the mis-selling of cover, many consumers are still facing paying inflated premiums for lacklustre cover until any recommendations made by the Commission and the FSA are implemented.
Simon also insists that the majority of confusion over payment protection insurance is down to unclear policy wording and the product lacks simplicity and clarity of product design. He goes on to say that the sector needs to be more transparent so that it is easier for the consumer to understand.
The FSA recently implemented a £2 million campaign that is designed to help educate customers on policy terms, focusing on exclusions as well as the consumers’ rights to shop around for payment protection insurance cover.
Simon applauds this action but says that overall it is the responsibility of the banks and high street lenders to start acting more “honourably”.
“These organisations are raking in mountainous profits from payment protection insurance sales, often selling them to people who aren’t even eligible to claim” he says.
