Calls Over Payment Protection Insurance
Which? Who are one of the country’s leading consumer groups, has urged the city watchdog to make it their goal, that all people, mis-sold PPI, get recompensed.
They are suggesting to the Financial Services Authority, that they take certain steps, that relate to the sale of PPI, and one of these steps is that any company that is found guilty of mis-selling PPI, gets reviewed.
Another regulatory measure that they feel would work wonders, would be to get financial institutions to write to customers, and give them information on the policies that they were sold, including the overall cost of it
Such letters should also be inclusive of an FSA fact sheet, which outlines the difference between a PPI sale that is acceptable, and one that is not. The fact sheet would also tell consumers of what measures they can take, if they feel that they have been incorrectly sold PPI.
PPI, and the service that it offers, (the payment of debt if the policy holder becomes unable to work) has been criticised a lot in the last couple of years, and the main reason for this, is that financial institutions have been charging far too much for it.
It has also been criticised because it has been sold to people that would not be able to make a claim on such a policy, if they had to. A reason for Which? expressing such concern, is that people pay a single premium for the cover, which is then added to the loan, and then the policy holder has to pay interest on it.
Something that Which? Has also suggested, is that a ‘redress payments calculator’ gets developed, so that people are adequately recompensed.
It is felt across the board by the consumer representatives, that fining the companies that are guilty of mis-sold PPI, simply is not good enough.
Financial institutions are still receiving fines for the mis-selling of PPI, so therefore they are obviously not taking heed, and are not overly concerned about the fines that they receive.
The case must surely be, that the FSA does more, and indeed as much as it can, in order for the consumers to stop falling foul of purposeful malpractice. A system needs to be put in place, that is completely fair.