Point of sale Prohibition to stop mis sold ppi
Today the Competition Commission brought out new guidelines to try and forbid the consumer being mis sold ppi in time to come .
The new guidelines will prohibit companies and brokers marketing payment protection insurance (ppi) at the point of sale for credit products such as loans as they feel that these companies and brokers do not face contention at the point of sale.
This will immensely cut down the number of mis sold ppi claims in the future as the consumer will have the option to shop throughout for this type of cover if they require it and will also be notified by the company that sold the credit product after the sale has been concluded.
The next benefit to the consumer is they have the opportunity to shop roughly for policies and could also end up saving hundreds of pounds over the term of the policy as they will almost be warranted to save money on the policy that they will be offered from the supplier.
As no surprise to the changes projected Lloyds and Barclays bank opposed them but thankfully on this occasion they have failed to less favourable to the consumer.
Over 90% of PPI sold in the UK relates to financial products and this is why we have seen a large heighten in ppi claims in the last 18 months or so. Financial products that it is normally linked with include unguaranteed loans, credit cards mortgage sales and secured loans. If you have been sold ppi with any of these products in the past then the chances of being mis sold ppi will be quite high.
The quicker these new prohibition rules are put in place the better for the consumer as it will start to give the consumer more protection from being mis sold ppi by providers or brokers.
Having ppi mis sold is common exercise with the amount of claims the Financial Ombudsman upholds and hopefully these new measures announced today will start to reduce the amount of consumers being mis sold ppi in the future.
This is one step onward for consumer security and the banks and other financial institutes that sell ppi as part of their day-to-day routine when people take out some form of credit with them will not like this new ruling as it will mean they will lose out on a large proportion of ppi sales in the future.
