Letters: FSA should act on product insurance

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Letters: The payment protection insurance industry is in need of a major shake-up

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Re: Letters: FSA should act on product insurance

FSA should act on product insurance

• <LI class=publication>The Guardian,
• Tuesday August 26 2008
• Article history

Your article (Watchdog fines car dealers over PPI mis-selling, August 22) proves that the payment protection insurance industry is in need of a major shake-up. For nearly 10 years, research by Which? and, more recently, the Financial Services Authority has demonstrated widespread mis-selling of PPI policies, yet consumers are still getting ripped off. While it is good to see firms being hit in the pocket for mis-selling, the FSA and the industry need to do more to stop it happening in the first place. They must take stronger action across the whole of the PPI market and make sure all sales meet the prescribed standards so that consumers are sold products that meet their needs.
Anyone who has a personal loan, credit card or any kind of credit agreement should check if they have a PPI policy and, if they think it was mis-sold to them, consider making a complaint. Until the industry and FSA take appropriate steps to clean up the sale of PPI, consumers will continue to pay the price.
Louise Hanson
Head of campaigns, Which?
Your assertion (Viewpoint, August 22) that "there are an estimated 18m policies in circulation, most of them mis-sold" is both unsupported and misleading. PPI allows borrowers to protect themselves against circumstances which would otherwise prevent them from repaying their loans. And it works - 80% of claims made on PPI policies sold by Finance and Leasing Association member companies are met. Discussion is best served by sticking to the facts. Otherwise, many people will choose not to protect themselves, at the worst possible time.
Stephen Sklaroff
Director general, Finance & Leasing Association.

Was just wondering how many of our members have successfully claimed on PPI and how easy was it?
This chappy says 80% of claims are met and if there 18 million PPI policies out there as is suggested that leaves an awful lot not paid IMO.