FSA Reveal PPI Facts
The Financial services authority (Financial services authority) is introducing comparative tables for Payment protection insurance (Ppi) from March next year.
The Ppi scheme - an insurance policy designed to cover monthly repayments on mortgages, secured and unsecured loans, store cards and credit cards should the debtor not be able to work due to accident, sickness or unemployment - is presently under investigation by the Rivalry Commission.
It is having a look at the methods of Ppi sales including its numerous pitfalls and exclusions.
Our research has found that lots people are still taking Payment protection insurance straight from the lender,” says Robin Gordon-Walker, a spokesperson at the Fsa. “They don’t want to go to a broker as they think it is time consuming and there is little opportunity to look around - in fact there is a big gap in the market if they try to do so.”
Kevin Carr, from insurance company IFA Lifesearch, said that although giving help clients to find a superior deal was a good thing “cheap rubbish is still cheap rubbish”.
The Financial services authority said that improving the Ppi market was one of its top priorities in its work in the area of retail.