It is time to take action!

In the wake of repeated reports about the ‘scams’ in the payment protection insurance (PPI) industry, one can only hope that it won’t be long before the Government takes action and draws up strict guidelines on policy pricing and sales processes.

However, in the meantime, with the PPI sector anxiously waiting on a decision from the Office of Fair Trading (OFT) as to whether it will be referred to the Competition Commission for a full investigation, many consumers are still being subjected to rip-off premiums and sloppy sales practices.

Simon Burgess from specialist payment protection provider BritishInsurance.com welcomes investigations in to the sector, saying: “Lenders should not be allowed to cheat borrowers by offering them a PPI policy that is more often than not over-priced, and often unsuitable.

“It is all pure greed by the lenders, with consumers paying a lot more than they have to for protection. Some companies are taking up to 80% of the premiums in commissions.”

Several companies have already faced hefty fines from the Financial Services Authority in connection with poorly kept records of PPI sales; hidden sales information and not stating clear terms and conditions about exclusions.

And tighter and stiffer regulations are on cards by the FSA, but they have not been confirmed yet. The FSA is considering more how to create more awareness about the suitability about PPI products among UK consumers. This will include the realisation that they can shop around for standalone policies from independent providers and are not tied to their credit provider.

In the meantime, consumers looking for payment protection can visit independent providers such as BritishInsurance.com who offer low cost premiums for loan, mortgage and income protection insurance, without compromising on the level of cover provided.