1 October 2008
A heavy-handed approach by the Financial Services Authority (FSA) is required to stamp out the mis-selling of payment protection insurance (PPI), uSwitch.com has claimed. The independent price comparison and switching service said the latest findings of the FSA's review into the sale of PPI highlight the need for tougher intervention. It pointed out that while PPI - which is sold alongside personal loans and other forms of credit to protect against loss of income - can be a valuable product, there are still many instances where it is not being sold to borrowers in the correct way. For example, while 87% of borrowers were informed of the monthly cost of PPI, just 62% were told how much it would cost over the term of their loan and only one third were given details of their statutory cancellation rights. Simeon Linstead, Head of Personal Finance at uSwitch.com, said: "As the FSA's investigation has regrettably proved, mis-selling is still rife across the industry." The FSA's Managing Director Jon Pain insisted that tackling the mis-selling of PPI remains a "high priority" for the regulator.
© 2008 Adfero Ltd
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