5 October 2007
The Financial Services Authority (FSA) is to issue useful advice on payment protection insurance (PPI) on its website in a bid to make it more user friendly.
The City regulator will publish tables on its site from next March to allow consumers to compare the PPI policies that are currently available.
PPI is designed to help people to make repayments on their credit cards, bank loans or mortgage if they become ill or unemployed.
However, this latest step by the FSA follows recent research by consumer bodies including the Office of Fair Trading and the FSA into the misselling of PPI products.
"Our research has found that many people are still taking PPI 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 shop around - in fact there is a big gap in the market if they try to do so."
In the latest phase of the Financial Services Authority's (FSA) investigation into the selling of PPI, the industry regulator found that 90% of firms are now making it clear to customers that PPI is optional. However, it also found that little improvement has been made by certain providers on transparency of prices and the suitability of customers for PPI policies.
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