New PPI guidelines to be available from FSA
October 25, 2007
The UK’s financial regulator, the Financial Services Authority, has announced that it will be stepping in to make it easier for consumers in the UK to find the right Payment Protection Insurance policy for their needs.
PPI has come under fire over recent months, with regulators carrying out a review that showed this type of cover has been mis-sold, pushed onto customers who didn’t want to take it out, and even sold to customers with their knowledge in some cases.
As a result of this many consumers have ended up taking out cover that was not suited to their needs, or taking out cover without realizing it when it has been automatically added to a quote for finance. The Financial Services Authority has taken a dim view of this, and has imposed stringent rules and regulations regarding the sale of PPI, coming down hard on lenders and companies that fail to adhere to the regulations.
In addition to this the FSA has now announced that it intends to help consumers that want to take out PPI to get the right policy to suit their needs. From 2008 consumers will be able to enter their needs, circumstances, and requirements on the FSA website, and will then be able to select from a choice of PPI policies that match their needs. This means that consumers will no longer have to put up with inappropriate policies that offer no real benefit or protection.
The FSA continues to impose hefty penalties on companies that are still mis-selling PPI. This type of cover is designed to cover repayment on finance for a set period of time in the event that the policyholder is unable to meet repayments due to sickness, accidents, or redundancy.
Alan Wright
25th October 2007
Recent posts:
- Savings guarantees clarified for customers
- Sainsbury’s offering low cost home insurance on bundles
- Ofcom to get involved with broadband industry summit
- Women taking on extra work to cope with mortgage rises
- Other banks benefit from Northern Rock misery
Related Articles
- How effective is the Lloyds TSB charge reduction? Some industry experts are questioning just how effective the reduction in charges put forward by Lloyds TSB will be. The banking giant recently announce changes
- Ridley quits Northern Rock Following a period of turmoil and chaos the chairman of troubled bank, Northern Rock, has quit his £315,000 a year job, which he has held
- Effects of housing market cooling start to show According to a report from the Halifax Bank of Scotland (HBOS) there was a drop in property values in the UK in September, and the
- Chancellor thinks longer term fixed rate are the answer Affordability when it comes to buying property in the UK has diminished over recent years, with a combination of rocketing house prices and higher interest
- Legal and General have to pay out to cancer victim A cancer victim has finally received justice after her insurance company refused to pay out against her critical illness cover, stating that she had failed
Comments
Got something to say?