The Financial Services Authority (FSA) has found the standards used in the payment protection market to be inadequate. There is evidence that firms are not adhering to the rules.
The financial regulator has been trying to improve the practice of the selling of payment protection insurance (PPI) since it began regulating the sale of these policies in 2005. PPI is the insurance sold along with loans and credit cards to cover the repayments if the policyholder is unable to work due to unemployment, sickness or an accident .
Of chief concern to the regulator is the failure of firms to inform customers that the insurance is optional, giving the impression that buying PPI is necessary for them to obtain credit . They want customers to have a clear indication of the cost of the insurance and the circumstances it covers. Also, they must be given a fair refund if they want to cancel.
Poor standards in PPI insurance
Financial Services > Income lnsurance > News
Poor standards in PPI insurance
Mon, 10 Mar 2008
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