Burgesses Blasts Finance & Leasing Association Support For Single Premium PPI
It has been said that the manner in which the Finance and Leasing Association has supported single premium payments for payment protection insurance, is irresponsible.
The criticism comes in regards to the companies that are adding the cost of PPI onto the cost of borrowing. There is also the problem of companies putting consumers under pressure to take PPI, and the Financial Services Authority has been quick to criticise the companies that are operating in this manner.
The Competition Commission are aware of the problem, and plan to force companies to drastically reduce the cost of PPI, and also stop them from selling PPI alongside borrowing.
Some feel that this is not the way forward though, as people may neglect to secure PPI from an alternative source, and therefore leave themselves vulnerable. Although not ideal, these lump sum premiums do serve a purpose.
There are people that feel extremely shocked by the support that has been shown towards single premium PPI, by the Finance and Leasing Association. They seem to be the only organisation that is not completely against the product, or more specifically, the manner in which it is being sold, by financial institutions.
It is a fact that monthly premiums would work out far cheaper for the consumer, as well as being far more flexible, with free coverage periods, and age specific tailoring of policies.
Some are of the opposing opinion though, voicing concerns over monthly premium policies making it difficult for people to protect themselves during the credit crunch.
Such concern is not considered warranted by many though, who feel that the only reason that the financial institutions do not want reform and regulation, is because they make such great money from the way in which they sell such policies.
The situation is set to get worse, prior to getting better, because the banks are running low on capital, and so will be wanting to push such products onto people, in order to maximise on profit.