If so many people are on the edge when it comes to meeting their monthly payments, they are unlikely to cope should they lose their job or be unable to work. I don't think there has been a more important time to make sure good quality PPI is at the front of borrowers' minds in the last 15 years.
Braintree, Essex (PRWEB) December 21, 2008
The financial services industry has a huge educational task to fulfil if it is to protect the millions of homeowners that are currently struggling with their mortgage.
Having been quick to offer debt to consumers, Sara-Ann Burgess, a director at payment protection insurance (PPI) specialist Burgesses and longstanding campaigner for a fairer market, said it was now time to make sure borrowers had the right information to help them through the difficult times ahead.
She explained: "We have all been very quick to enjoy the good things in life in recent years and now the bill has arrived things are not looking so rosy. For borrowers that suffer the unexpected blow of accident, sickness or unemployment meeting their financial commitments is going to be very difficult."
Burgess highlighted recent reports that up to two million homeowners were considering taking a repayment holiday on their mortgage as clear evidence of the financial stress that many households were under.
She said budgets would already be stretched by the demands of Christmas and was not surprised that so many people were looking to take a breather from paying their mortgage.
However she added: "If so many people are on the edge when it comes to meeting their monthly payments, they are unlikely to cope should they lose their job or be unable to work. I don't think there has been a more important time to make sure good quality PPI is at the front of borrowers' minds in the last 15 years."
Against a backdrop of ongoing investigations into the PPI market, Burgess said there was a lot of negative sentiment to deal with, but felt that things were swiftly improving.
Burgess said it was down to every independent provider of PPI to make sure they were offering the value and flexibility required by borrowers and to get the message across that good quality policies were available and had a massive part to play in the future welfare of Britain's borrowers.
"Some businesses have already played a leading role in this regard," said Burgess. "For many years PPI providers like British Insurance have really banged the drum for a better market offering cheaper, more robust products that provide the cover borrowers need at a price they can afford. In essence, PPI is a relatively simple product and there is no reason it cannot be priced and sold in a way that creates a secure and solid safety net for borrowers."
Too many providers had become greedy over the profits they could make in this market and had lost their way in terms of offering good value. Burgess said the PPI market now had an opportunity to put things right and had to take the time and effort to significantly improve its offering and make consumers aware of what was on offer and how PPI could help them.
"As consumer education improves I believe providers like British Insurance, that have led the way in this market, will have a significant role to play in safeguarding the financial future of millions of UK borrowers. Whatever happens the industry cannot stand by and let borrowers leave their debt unprotected and vulnerable to a surprise change in their circumstances."