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British Insurance: Online providers mis-selling PPI warns British
Insurance
(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:08072008
Companies selling Payment Protection Insurance over the internet are
ignoring the Financial Services Authority's new guidelines on Treating
Customers Fairly says Simon Burgess from independent provider British
Insurance.
In a bid to combat the widespread mis-selling of PPI, the FSA revised
its Insurance Conduct of Business (ICOB) rules in January this year and
introduced a new requirement asking firms to take reasonable steps to
ensure customers are eligible to claim under the terms of the
protection offered.
As well as scrutinising customers' eligibility prior to the product
sale, providers were asked to advise purchasers if they were unable to
claim under one or more elements of the policy.
The FSA set a deadline of 6 July to comply, but according to Burgess,
the 12 sites he randomly checked ignored this ruling. He comments:
"None of the sites I viewed have amended their sales process to meet
the FSA's latest rule change.
"It's not difficult - firms only need produce a simple eligibility
document that advises potential purchasers of their suitability for the
product and then asks customers to tick a box stating they have read
the eligibility listing and understood it before buying PPI. People
should not be allowed to buy PPI unless they've gone through this
process."
The FSA also requested providers remind customers of their right to
cancel within 30 days (increased from 14) and disclose the total price
of cover plus interest on a single premium policy. "I doubt providers
are following these guidelines either," continues Burgess.
"Yet again, the majority of PPI providers are flouting FSA rules and as
a result, opening the floodgates for more compensation claims,
increasing the number of complaints to the Financial Ombudsman Service
and further damaging the reputation of the more ethical providers in
this sector."
He concludes: "Their actions have already dented consumer confidence
and this latest display of arrogance will only serve to further push
potential purchasers away from obtaining cover and leave them without a
financial safety net should accident, sickness or unemployment occur.
I sincerely hope the FSA clamps down on these online rogues very soon."
Notes to Editors
British Insurance regularly tops Which? And Defaqto's Best Buy'
tables. The Company was awarded Mortgage Strategy magazine's General
Insurance Distributor of the Year accolade in Feb 2007, Mortgage
Intelligence's Best Insurance Distributor award for 2007, Mortgage
Introducer's Best Mortgage Payment Protection Insurance provider in
April 2007, What Mortgage? magazine's Best Insurance Broker Award for
2006, Best Mortgage Payment Protection Insurance Provider Award for
2007 and 2008, plus Best Overall Insurance Provider 2008.
CONTACT: Simon Burgess, managing director, British Insurance
Tel: +44 (0)7718 152 635
WWW: http://www.britishinsurance.com
((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
Further information on M2 PressWIRE can be obtained at
http://www.presswire.net on the world wide web. Inquiries to
info@m2.com)).
Copyright ? 2008 M2 Communications Ltd.
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