Although certain quarters of the financial services industry have welcomed the banning of the sale of payment protection insurance (PPI) alongside loans and credit cards, questions have been raised about the timing of the decision.
Under the new rules, PPI providers will have to wait seven days before they are able to contact a customer to offer them the protection insurance, which covers policyholders’ repayments if they are out of work or are unable to work due to illness .
However, the ban does not come into effect until 2010 and according to consumer watchdog Which? this is too long to wait. Louise Hanson, head of campaigns at Which?, said: "Industry shouldn’t wait until 2010 to get their house in order and the FSA should make them act sooner. PPI has been thoroughly investigated for years and everyone knows its failings, so what’s the industry waiting for?"
Paymentcare.co.uk also raised concerns that with the current economic crisis, the timing of the banning may be dangerous for consumers who may go unprotected.
Timing of PPI ban raises questions
Financial Services > Income lnsurance > News
Timing of PPI ban raises questions
Wed, 04 Feb 2009
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