Payment protection insurance scandal predicted to be bigger than endowments
- 17TH JUNE 2007
There have been many scandals in the financial industry since the turn of the new millennium. There is some debate as to whether this is because individuals are becoming more clued up about the products that are on offer or whether consumers are more vocal if anything goes wrong.
Unfortunately, it is more likely to be the latter. When endowment policies were the financial fashion in the 1980s, many people invested in one, only to find out that many would actually fall far short of their given target. Recently, it has been payment protection insurance that has been under the spotlight because of the amount of policies mis-sold.
However, that is not to say that consumers are more educated about individual payment protection insurance policies now than they were before. It is essential that consumers do seek information and going through an independent payment protection specialist like the ethical British Insurance can give an individual more knowledge than going through an institution targeted on sales such as a bank or lender.
Simon Burgess of British Insurance has stated that many policies have been misold as a result of targeted environments neglecting consumers, and he is completely correct in his assertion. Anybody believing that they have had a policy misold to them should seek advice from the Financial Ombudsman but should not turn their back on payment protection insurance. It is a very useful policy if you know what it is and exactly what it can do for you.
