FSA Launch PPI Tables

[EXC]

http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/059.shtml



FSA launches payment protection insurance comparison tables



Chris Pond

Improving the PPI market and the deal consumers receive is one of the FSA's top priorities...




FSA/PN/059/2008
23 June 2008

The Financial Services Authority (FSA) has launched free, impartial comparison tables for payment protection insurance (PPI) on its consumer website:

http://www.fsa.gov.uk/tables

The new tables are designed to help consumers who are thinking about taking out a PPI policy to shop around and identify products that could meet their needs. Whether the policy is to cover a mortgage, an unsecured personal loan, secured loan or credit card, consumers will be able to compare different products on offer.

Chris Pond, FSA Director for Financial Capability, said:
"The FSA is committed to helping consumers make informed decisions about PPI and to shop around more effectively - the PPI tables are a key part of this. Improving the PPI market and the deal consumers receive is one of the FSA's top priorities, and central to this is enhancing consumer power in this market.
"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."

The PPI tables, which are updated daily, will feature single and regular premium policies As well as giving information on the cost of PPI, the tables will provide details of exclusions and how pre-existing conditions are handled. This is the latest step in a longstanding programme of work the FSA has been carrying out to improve the standards of PPI sales.

The FSA’s tables were set up in 2001 to provide impartial information to help consumers shop around for financial products. With the addition of PPI there are now tables for eight products including annuities, mortgages and savings accounts. The work forms part of the FSA-led National Strategy for Financial Capability which aims to find ways to improve the nation’s financial capability and understanding of personal finance.
Notes for editors

1. More information about the PPI Tables was set out in a Response Paper published in November 2007 to Consumer Bulletin No 8 published in July 2007 which discussed issues around the creation of new comparative tables for PPI.
2. The FSA recently published the findings of it most recent review of PPI Selling standards.
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

[Amethyst]

Re: FSA Launch PPI Tables

Interesting


Perm Employed 35 hours a week, 30 yrs old, to cover payments of £200 a month over 5 years on an unsecured personal loan (I thought that was pretty typical) for accident, sickness and unemployment.....

Bradford and bingley £2.00 per £100 a month cover payable over the term of the loan, total £120, wait time for A&S 31 days and unemployment 31days. oo and includes life cover. Excludes backache or stress.


One providers costs £838 and you can only pay it over 12 months.

A LOT of providers only supply via an adviser or broker.



Its all very complicated...but the FSA site does include a lot of information - exclusions, preexisting conditions info, refunds ( lots using rule of 78) etc.




oooo look - covering loan of £10000 over 5 years. direct comparison of PPi standalone and PPI WITH a loan of theirs - guess which is which.


Bradford & Bingley...Loan Payment ProtectionO,B,D..... Term 31 31 ........... 1.00..........N/A.......... 60.00
Bradford & Bingley...Loan Payment ProtectionO,B,D ...Term 31 31 ......... 40.93.........N/A............ 2455.98



Oh and the credit card ones a bit amusing - all the individual cover providers are all £2 - £4 per £100 of cover - the big banks PPI credit cards are all around £7 - £7.80 per £100 of cover.


When they finished sorting the tables out so they work properly - cause they don;t at the moment theres a few glitches...it will be quite useful as it is quite comprehensive compared to some of the comparison sites.

Just shows how complex it all is (needlessly) and how consumers are hoodwinked into paying over the odds with their card/loan providers by the handy provision of a check box.

[EXC]

Re: FSA Launch PPI Tables

From Times Online

June 24, 2008


FSA attacked over PPI comparison table



Lauren Thompson


div#related-article-links p a, div#related-article-links p a:visited {color:#06c;}
The Financial Services Authority (FSA) has launched an online comparison table for payment protection insurance (PPI). The table allow consumers to see details of different PPI policies, including the cost, exclusions and how pre-existing conditions are handled.

But industry experts have branded the service "indecipherable" and given warning that it will do nothing to stop mis-selling.

PPI covers repayments on credit products if the borrower becomes unable to pay due to an accident, sickness or unemployment. Lenders have been criticised for aggressively selling the insurance, which is frequently overpriced and ineffective, alongside mortgages, credit cards and personal loans. The Competition Commission, which is currently investigating the market, has already called for greater clarity on costs - whilst thousands of consumers who have been mis-sold the policies are in the process of claiming refunds.
But Simon Burgess at insurer British Insurance said: “The tables do not allow consumers to compare products on a like for like basis. There are so many product variations with differing exclusions, terms and conditions, it’s impossible to be able to collate the data in a way that allows consumers to work out what’s really a good deal.”
Related Links

• Fight for your PPI refunds

• Payment Protection Insurance explained

Mr. Burgess said that consumers using the tables are faced with “a staggering array of information” – for example, a 44 year-old looking to protect a £400 monthly mortgage repayment would be faced with 482 PPI providers in a table. “These indecipherable tables will be of no use to consumers at all. How can they possible identify products that meet their needs when there’s so much to choose from?” he said.

Campaigners at consumer watchdog Which? added that the comparison tables are not enough to tackle the widespread mis-selling of PPI. Teresa Fritz at Which? said: “While comparison tables are always useful, people should be aware that there are alternative and better products than PPI – for example income protection insurance, which is usually much more effective.
“It’s vital that consumers are offered the opportunity to review their entire protection needs when being sold a loan, or there’s a danger they won’t have adequate protection. “
Money Central: The 25 most outrageous insurance policy exclusions ever

[Amethyst]

Re: FSA Launch PPI Tables

actually its not 482 providers its about 15 providers with a lot of entries for a couple of them....

you can easily skim past those to the providers you have heard of. It does look complicated tho and there is a lot of information which i think should be praised not put down.

Its not the easiest to use and there are glitches with it - especially the credit card comparison bit. But the tables are clearly marked and the comparisons between products are easy to decipher.

Suppose its not spoon feeding tho and if you dont want to put any effort in you'll carry on just ticking the boxes.


This is just a ridiculous statement IMO ''“These indecipherable tables will be of no use to consumers at all. How can they possible identify products that meet their needs when there’s so much to choose from?”'' ffs - errr exactly the same way they chose travel insurance or car insurance .

[EXC]

Re: FSA Launch PPI Tables

oooo look - covering loan of £10000 over 5 years. direct comparison of PPi standalone and PPI WITH a loan of theirs - guess which is which.


Bradford & Bingley...Loan Payment ProtectionO,B,D..... Term 31 31 ........... 1.00..........N/A.......... 60.00
Bradford & Bingley...Loan Payment ProtectionO,B,D ...Term 31 31 ......... 40.93.........N/A............ 2455.98.

Ame could you just explain what this is? Are you saying the same policy is sold at £60 and £2455?

[Amethyst]

Re: FSA Launch PPI Tables

yes pretty much

top one is an individual stand alone policy - second one is one if you buy it within a loan

i cant help but think the figures must be wrong on that cause its a bit excessively mental will have a nother look at tables tmw cause yes they are a bit confusing - and all the link for different rates with same comapnies go to one central overview of information rather than specifics for the different policys - that is copy and pasted off the comparison chart tho.

[Amethyst]

Re: FSA Launch PPI Tables

Here snapshot of table

Your choices


You are 33 years old
You are a UK resident
Cover for : Accident, sickness and unemployment
Standalone products and products from lenders
You want to cover £10,000 of borrowing
The protection runs for 5 years.
You work 35.0 hours per week
You are in permanent employment

[EXC]

Re: FSA Launch PPI Tables

Here you go Ame.

Paul Lewis interviewing a suit from the FSA about the tables.

http://news.bbc.co.uk/player/nol/new...news=1&bbcws=1