Mon 30th Oct, 2006
Insurancewide welcomes PPI ruling
Insurancewide.com has welcomed the recent rulings of the Financial Services Authority (FSA) regarding payment protection insurance (PPI). The FSA recently found that there were serious failings in the sale of PPI to consumers, a finding which was echoed by the Office of Fair Trading (OFT). The OFT is planning to refer the PPI industry to the Competition Commission next year. Insurancewide has also responded to the recent news that the FSA has fined Loans.co.uk for failings in the sale of PPI.
Insurancewide chief executive, James Harrison, said: ‘The PPI and MPPI products are both helpful and worthwhile products that when required can assist the policyholder in paying loan payments in times of trouble be it as a result of accident, sickness or unemployment. Previously the problem had been that banks sold the policies as part of a package and at a rate that was a lot more than that which could be found from specialist brokers.’
He added: ‘Insurancewide.com welcomed more companies entering the market and offering this product as it created more awareness that they were available outside banks. It is a great pity that some companies appear to have taken advantage of this situation and not been giving clear advice to their customers and we welcome the FSA’s rulings. Our recommendation is to visit specialist brokers such as Britishinsurance.com, available through Insurancewide.com Life & Financial channel, who can offer clear advice and excellent rates.’
The recent decisions by the FSA and OFT regarding PPI have been welcomed by most consumer organisations.