Commenting on the latest FSA fine for PPI mis-selling handed out to lender Egg, Shane Craig of independent PPI provider Paymentcare says, “This is yet another vindication of the Competition Commission’s proposal to ban point-of-sale PPI. The tactics employed by Egg to shift as many PPI policies as possible are a perfect example of why borrowing and protection agreements should be kept separate. As the FSA has exposed, Egg, like other lenders who have also been found guilty of mis-selling PPI, has abused its advantageous position. The ongoing investigation into the way PPI is sold has been very revealing and it is now blindingly obvious how it has been possible for consumers to have been misled into signing up for something they may not want, need or even realise they are buying.
“The sooner the Competition Commission’s remedies to the PPI market are enforced the better for all concerned. Consumers will no longer be paying out unnecessarily large sums for protection that may be inappropriate to their needs and lenders will no longer incur such massive fines for failing to treat customers fairly.”
Income protection insurance: News update: December 2008