Payment protection insurance comparative tables set for introduction
MORTGAGE INTRODUCER - 4TH AUGUST 2007
The Financial Services Authority (FSA) is to introduce comparison tables for payment protection insurance and unsecured loans.
The tables will be aimed at all consumers considering taking out a mortgage, unsecured personal loan or credit card payment protection insurance policy. There will also be a separate table published of unsecured personal loans without payment protection insurance, so that consumers will not be limited to seeing loans that are packaged with protection.
The tables will cover single and regular premium policies, products from standalone providers and unsecured personal loan products where the payment protection insurance is linked to the loan.
The FSA said the aim was to fill a void of consumer information on the products and give consumers the means to shop around. The tables will be launched by March 2008.
Robin Gordon-Walker, spokesperson for the FSA, said: “One of the problems with the payment protection insurance market, and there are many, is that consumers are not realising there are different providers, different prices and a market over and above those just providing the loan. Payment protection insurance is never compulsory. We are trying to explain to consumers that there is a developing market and there are standalone providers, so they can make an informed decision.”
Simon Burgess, managing director of British Insurance, said: “This will be of benefit to the market as a whole and bring transparency for consumers.”
