"Indecipherable" Payment Protection Insurance Comparison Tables
Article published on 1st July 2008
An online comparison table of payment protection insurance (PPI) policies has been launched by the Financial Services Authority (FSA), unfortunately leaving industry experts unimpressed, branding it "indecipherable".
The intention of the table was to enable the paying public to see compare and judge for themselves different payment protection insurance policies, including how much they cost and the actual content of the policies.
Yet experts of the insurance industry have warned that it will do little to prevent the mis-selling of these policies (as discussed in previous articles).
PPI's are intended to protect regular payment, such as for mortgages and credit card bills, just in case the customer cannot keep up the payment for whatever reason.
This form of insurance has been criticised as being one of the most aggressively mis-sold in the industry, often overpriced and largely ineffective. Many thousands of consumers who believe they have been mis-sold a payment protection insurance policy have begun claiming back the monies they spent on it even as the Competition Commission has made calls for greater clarity on all costs.
Insurance broker Simon Burgess, speaking from British Insurance, has 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. "
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