I would say to anyone who has a PPI policy, that they should check exactly what it covers, what they are paying for it and make sure that it was something they actually wanted to take out in the first place.
Braintree, Essex (PRWEB) December 16, 2008
Consumers are being urged to check all of their payment protection insurance (PPI) policies in light of the huge fine that has been slapped on Egg Banking plc for serious failings in its sale of credit card PPI.
Sara-Ann Burgess, a director at PPI specialist Burgesses and a longstanding campaigner for a better PPI market, said the fine came as a timely reminder of the problems that still existed in the PPI market.
She commented: "I would say to anyone who has a PPI policy, that they should check exactly what it covers, what they are paying for it and make sure that it was something they actually wanted to take out in the first place."
Burgess said too many people had been harried into buying a PPI product and either ended up with something they did not need or something that was not suitable for their circumstances.
This was not only a problem within the credit card sector, but also across the market, according to Burgess.
It was also important for consumers to make sure that they were not overpaying for the protection they had in place and Burgess said it was essential for consumers to look out their paperwork and see if there wasn't a better deal on the market, that could provide them with the same cover, but cost them less each month.
"The policies that Egg has been fined for, relate to sales that were made between January 2005 and December 2007. Many individuals will have forgotten the details of their cover and just be used to the monthly amount they are paying for it. However for those who need the cover, it is very likely they will be able to find a cheaper alternative on the market through a provider such as British Insurance."
In the past, Burgess said that the majority of consumers had taken PPI cover from the same firm that had offered them the credit. Whether buying from a mortgage, loan or credit card provider, Burgess said this tended to be an expensive way to go and urged consumers who had done this to take a moment to see if there might not be something cheaper available.
"PPI at its best is an excellent product and I would love to think that everyone who has bought PPI is getting value for money and enjoying the security afforded by the cover. However this simply is not the case as Egg's fine all too clearly proves. Hopefully consumers will take the chance to review their own personal situation and make sure they are getting the best of what's on offer."
Burgess said specialist intermediaries like British Insurance would be able to guide consumers towards the best products available and in many cases would be able to rearrange the cover they had in place and save them money at the same time.
With borrowers facing such a tough financial climate, Burgess said such a move would help them cut their monthly outgoings without having to forgo their insurance.