Payment protection insurance review is overdue
POST MAGAZINE - 19TH MAY 2005
In recent day, the Financial Services Authority has revealed that it is undertaking “a major project” to review the sale of payment protection insurance, following a barrage of criticism form the press, consumer groups and the Financial Ombudsman Service.
As an insurance broker specialising in the sale of payment protection insurance, I do not consider this to be a problem, or fear its consequences. Quite the contrary, in fact, I see it as analogous to the Factories Act, which was introduced in Victorian times to protect legitimate businesses from competitors that were willing to put children up chimneys.
Today, by forcing lenders to clean up their act and stop the outrageous profiteering form consumers, the FSA will provide a level playing field for brokers, which, by offering good value products, can claim a share of the £5billion in annual commissions that are available in the UK from payment protection insurance.
Simon Burgess
Managing director
Burgesses
