Post Office wants end to aggressive PPI tactics
February 16, 2007 by admin
Filed under News, News-Insurance
The Post Office is calling for aggressive payment protection insurance (PPI) sales tactics to be stamped out.
It follows the news that credit card company Capital One has agreed to pay a fine of £175,000 following an investigation by the Financial Services Authority (FSA).
The firm was lambasted for its poor sales and administration in regards to PPI and the Post Office has welcomed the FSA’s decision to issue a fine.
However, it also calls upon the industry as a whole to improve its standards or risk losing the trust of customers.
“If we want customers to trust our industry, these aggressive sales tactics must cease to allow for a more transparent and fairer marketplace,” said Claire Oldstein, head of communications at the Post Office.
“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.”
Ms Oldstein also pointed out that few customers know a great deal about PPI, with many unaware that they even have it.
In addition, aggressive sales tactics are leading to many people feeling as though they have no choice but to take out a PPI policy when they get a loan or credit card, even though this is most certainly not the case.
PPI is a voluntary insurance which is designed to protect borrowers should they be unable to work and cannot afford the repayments on their loan.
Many borrowers find that it gives them peace of mind, but it is recommended that you shop around for the best deal and do not feel as though you must take the policy offered by your lender.
