FSA launches PPI comparison tables
FSA launches PPI tables
Monday, 23 Jun 2008 17:05
The Financial Services Authority (FSA) has launched payment protection insurance (PPI) comparison tables to consumers find a competitive deal.
According to the FSA, the comparison tables will help consumers shop around and find a policy that will meet their needs.
Chris Pond, FSA director for financial capability, said: "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.
PPI, which pays out if a consumer is unable to keep up loan payments due to a change in circumstances, has come under criticism from the Competition Commission (CC) in a recent review.
The CC said consumers are being overcharged £1.4 billion a year by companies selling the product.
Part of the problem, the CC said, was that consumers almost always buy a policy at the same time as the loan, from the same people, without shopping around.
The policy tends to be overpriced because of the lack of competition and in some cases is totally unsuitable for the consumer.
Which? personal finance expert, Teresa Fritz, said: "While comparison tables are always useful, people should be aware that there are alternative and better products than PPI.
"It's vital they’re 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."