Fsa To Help Those Looking For Ppi
Consumers that are looking for PPI, are being offered help by the UK's financial regulator in the form of the Financial Services Authority, which is now offering advice on the purchase of this type of cover
Over the past couple of years authorities have found that PPI was being mis-sold in the UK to many consumers, often being sold to those that were not eligible to claim or did not want the cover.
It was previously found that some of the consumers that were being sold this type of cover, typically sold with credit cards, loans, and other forms of finance, were being sold the cover even if they were retired or self employed, which means that they would not be able to claim. In other cases the cover was being added to the finance without the knowledge of the consumers, and in some cases consumers were being led to believe that they had to take the cover out in order to qualify for finance.
The purpose of PPI is to cover repayments for consumers for a set period of time in the event that they cannot make repayments themselves due to redundancy, injury, or illness. However, according to officials from the Competition Commission many consumers may have been overcharged for this cover, to the tune of billions of pounds collectively. The Competition Commission has been considering putting a cap on the cost of this cover, and even stopping it from being sold alongside loans and other financial products.
The new assistance from the FSA will involve the provision of tables on the FSA website, giving consumers an idea of where to go for the best deals on cover. Consumers are reminded that PPI is an optional cover and certainly does not have to be taken through any particular provider, which means that they can afford to choose from a range of policies, and can therefore benefit from the FSA guidelines and tables.
In the past some campaign groups have described PPI as a form of protection racket, and this form of cover has come under real controversy over recent years. With the help of the FSA website consumers will be able to input their needs and circumstances, and will then be able to view a number of policies that may be suitable from a range of providers.