Customers must reject PPI offers from companies giving loans for property, cars, furniture etc. If not, the financial pay-back will be crippling. David took on Goliath and won and consumers must do the same with their credit providers - there are far superior insurance products on the market with substantially cheaper premiums.
Braintree, Essex (PRWEB) May 21, 2008
As the number of Payment Protection Insurance complaints to the Ombudsman soars to around 2000 a month and yet another firm is fined by the Financial Services Authority for mis-selling PPI, Simon Burgess from British Insurance urges consumers to source cover independently from their loan.
He comments: "PPI is now the most complained about insurance product - and with good reason. It's over-priced and sold via stealth. Many people are under the impression they won't receive credit unless they opt for the accompanying insurance, but now more than ever, customers must hold their nerve, reject these bullying tactics and buy their cover elsewhere.
"As awareness is raised about the mis-selling issues, more people realise they have solid grounds for complaint and are turning to the Financial Ombudsman Service. Complaints lodged for the whole of 2007 - 1,832 - do not match what's now being received in one month and this is the 'tip of the iceberg'."
The latest FSA fine of £210,000 to Land of Leather increases the coffers in the payment protection punishment pot to over £3.1million. The PPI sector is worth around £5.5bn to credit providers and 10 firms have been fined since September 06 for dubious PPI sales and follow-up practices.
Burgess continues: "These fines are miniscule compared to the obscene profits made in this sector. However, the net is closing on those who continue to 'rip off' customers and as a consequence, they are more likely to face a visit from the regulator or be reported to the FOS."
The FSA reports that some 58,000 Land of Leather customers were exposed to dodgy PPI sales practices and around 8,200 are paying up to £719 for a single premium policy (including interest over thee years).
Burgess concludes: "Customers must reject PPI offers from companies giving loans for property, cars, furniture etc. If not, the financial pay-back will be crippling. David took on Goliath and won and consumers must do the same with their credit providers - there are far superior insurance products on the market with substantially cheaper premiums."