AMI delivers PPI evidence

AMI highlighted the important role that PPI can perform in protecting consumers, but emphasised that it is only one of a suite of products that independent mortgage intermediaries consider when advising clients on the most suitable protection.

Key issues raised by AMI at the hearing were:

• Mortgage PPI (MPPI) is different from other PPI products
• MPPI is a valuable product when it is properly sold but is only part of a suite of products that meet consumer protection needs – a good intermediary considers all of the options
• AMI has produced guidance to members on advising on MPPI that sets out clear requirements
• PPI should be de-linked from any credit arrangement

Chris Cummings, director-general of AMI, said: “MPPI can be part of the solution to a consumer’s protection requirements. However, an intermediary will only consider MPPI as one of a suite of potential products.

“Good advice begins with an assessment of the consumer’s attitude to risk together with a review of personal and family assets that can be called on if necessary. It includes an assessment of any employer’s scheme. An independent intermediary can also explain MPPI’s context within other protection products.”

Cummings added: “We support the view that PPI should be de-linked from any credit arrangement. It should be clear to the consumer that access to the credit is not conditional on buying PPI.”