Payment protection insurance remains under scrutiny
- 27TH JUNE 2007
Payment protection insurance has been under scrutiny for quite some time now, and the investigations do not look as if they will cease any time soon. This can only be good for the consumer because it proves that the Financial Services Authority, Competition Commission and Office of Fair Trading are fully committed to ensuring that consumers get a fair deal in the future.
When the Office Of Fair Trading (OFT) announced that they had commenced their own investigation into the industry in February, consumers everywhere breathed a sigh of relief because they assumed that they would finally get answer to questions that had proved to be confusing in the recent past. This confusion had led to millions of policies being mis-sold.
However, some consumers had previously stated that they were happy with their policies and this has obviously been taken into account, but the majority were frustrated with the lack of information available to them if they happened to have a question.
It is anticipated that Competition Commission will take approximately eighteen months to complete their investigation with a view to creating a fairer and more competitive market. However, one can argue that the competition is already beginning to emerge in the form of standalone policy providers like payment protection specialists British Insurance.
At around 80% less cost to an individual, it is no wonder that consumers are beginning to take notice of standalone policy providers, and this competition may just pave the way for a better system for all!
