New Online Help For PPI Customers
The Financial Services Authority (FSA) has stated that people who feel the need to purchase payment protection insurance (PPI) can now get advice on the matter from the FSA website, via the internet.
A series of tables has been presented by the FSA, in order for consumers to be aided in making comparisons between different policies, and their costs.
PPI is the branch of insurance that deals with covering people, when in a situation whereby they cannot repay their loans, and it's created much controversy.
The Competition Commission released figures this month that stated insurance companies were overcharging customers by �1.4bn, annually.
The FSA launched a statement, with a spokesperson saying (the tables were) "a starting point to give customers basic information about what the polices offer, and what they cost".
The spokesperson went on to say, "PPI is almost always optional and consumers need to consider their own financial circumstances when deciding to purchase it and make sure they are clear about what will be covered."
Complaints
It's been an ongoing problem for a number of years, and PPI has come under criticism from Citizens Advice. Being labelled as merely a "protection racket".
Brokers stand accused of charging extortionate prices for PPI, as well as failing to actually provide the cover that has been specified.
A multitude of fines have been issued by the FSA, to companies who have sold PPI incorrectly.
The Competition Commission has been suggesting that temporary price limits are imposed on such policies. They have even talked of banning companies from selling PPI at the point at which borrowing occurs.
During the previous financial year, there have been no fewer than 11,000 complaints to the Financial Ombudsman Service, involving PPI. This means that PPI ranks highly among current sources of financial complaints.
Comparisons
Inadequate, if not non-existent information is being given to customers who purchase PPI. This has been deemed as unsatisfactory by the FSA, who have found this to be a problem across the board. People should be aware that there are alternatives to PPI that are far superior.
The new FSA comparison table does a lot to help consumers.
The website is set out so that customers can type in rudimentary personal details, and what their specific needs are. The possible policies along with their costs are then displayed.
Some providers have decided against supplying details of their policies, so therefore not all the insurance market is covered.
The FSA has stated however, that the service is very much comprehensive, and it does state which companies have failed to supply them with information.
Which? The consumer association has warned consumers to take care when purchasing PPI.
Which have said, "While comparison tables are always useful, people should be aware that there are alternative and better products than PPI." This statement is quoted from financial expert Teresa Fritz
The FSA website has a number of tables, covering subjects such as endowments, savings and mortgages. They receive about 80,000 hits a month.
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