Speaking at the London Mortgage Business Expo, Steve Devine, head of corporate communications at Cardif Pinnacle, said the current scrutiny surrounding the PPI market meant it had to deal with the issues of commission and choice.
He believed it was up to providers to drive up confidence and competence in the market as the industry was being damaged by the negative publicity it kept attracting.
Devine commented: “The industry has got big decisions to make on commissions and choice. We have to decide what the definition of choice is, as the current ‘take it or leave it’ stance is not a valid option.”
Devine also suggested the only way to overcome the stigma surrounding the PPI market was to form an independent taskforce including consumer groups, the regulator and the press.
He believed this would be the only way to shift what he labelled the ‘one-sided dialogue’ against its sale and encourage more brokers to start selling it.
However, Steve Walker, managing director of Promise Finance, insisted it was up to lenders to instigate change.
“The key thing is that change has to be led by lenders. They are the ones who provide the products. To expect all other parts of the industry to move in the marketplace is difficult. It should be led by the lenders and if things go wrong then the Financial Services Authority must focus on them.”
