Commenting on the Competition Commission's findings on the PPI industry, Duncan Caesar-Gordon at the Post Office, says: “The Competition Commission's announcement reflects the extent of the problem surrounding the sale of PPI. The Post Office has long been calling for an open market for PPI sales, where providers are honest with customers that other, cheaper standalone products are available. In particular, the sale of single premium PPI alongside products such as unsecured loans is an area of growing concern. Many of these customers have little or no understanding of the PPI policy they have taken out and how they will pay for it. It is also clear that aggressive sales tactics are still widespread, leaving vulnerable consumers at risk from being sold a PPI policy that is unsuitable for them and expensive. In the current economic environment, it is more important than ever that consumers are given fair and honest advice to ensure they are properly protected should the worst happen. An additional concern we have is how many customers are over-paying for PPI. Our recent study shows that one in five full-time workers have more than one PPI policy and could save themselves up to £570 per year by taking out a single product that could cover all major household bills. Again, clearer transparency at the point of sale for PPI products would help reduce this problem.”
To help improve the customer experience when purchasing the Post Office would like to see:
- More emphasis and information on the open market available to consumers
- A clearer distinction between the cost of the loan/credit and the PPI product
- A comprehensive comparison tool that compares the cost of the PPI product by a set benchmark ie cost per £100 of cover per month.
Income protection insurance: News update: November 2008