The news that the FSA has fined a mortgage firm £56,000 for selling Payment Protection Insurance (PPI) policies that may not have been suitable for their customers or on which they may not have been able to claim, has once again highlighted the need for customers to be careful when buying this type of insurance.
Covering mainly insurance for mortgages, credit cards and loans, the cost of PPI policies can vary significantly between these three product groups. In addition, costs differ considerably between policies for similar cover within each group, particularly for personal loans.
Brian Brown, associate director at Defaqto and author of Defaqto’s recent report ‘Payment Protection Insurance in the UK’ said, “These policies can provide valuable cover, but they are not for everyone. PPI policies are often complicated and can be expensive, so buyers should make sure they understand what they are getting for their money BEFORE they commit themselves”,
To help consumers find their way through the minefield of PPI cover, Defaqto has published a guide to Payment Protection Insurance which is available on the company’s website. This useful guide gives a simple introduction to PPI, shows what to look out for when being sold these policies and includes 14 tips on how customers can get a better deal. It is one of a series of consumer guides published by Defaqto, all of which are available on its website.
