Problems with payment protection insurance continue
- 25TH MAY 2007
After months of investigation by the Financial Services Authority and the Office of Far Trading, some high street lenders are still not adhering to regulations that have been put into place regarding payment protection insurance (PPI).
Payment protection insurance has been in the spotlight for over a year now and still there are accusations of certain companies prioritising sales over treating customers fairly.
Although the Financial Services Authority has come down quite harshly on certain lenders that offer payment protection insurance as a part of their product range, or so customers may have thought, some are still not pulling their weight and are very sluggish when it comes to putting measures that may harm their profit margins into place.
There are a number of issues that still need to be addressed where protecting an individual’s debt is concerned, like price for example. There is no guideline as to what is deemed fair in terms of the amount of cover an individual policy offers.
However, the Competition Commission - who are releasing an interim report on their findings in Autumn this year - may finally address that fact when they announce the results of their investigations in February 2009
As a result of the lack of improvement of the sales processes and the policies themselves offered by the banks and high street lenders, many experts are beginning to advocate standalone policies.
Not only do policies offered by specialist companies like the ethical British Insurance offer better rates and value for money, they can also cover every card and debt that you have!
