The British Insurance Brokers Association (BIBA) has backed the FSA proposal that companies selling single premium Payment Protection Insurance (PPI) should withdraw the product with immediate effect. The policy has been historically sold alongside unsecured personal loans and became a money spinner for many high street banks, many of whom included the policy as a matter of course.
BIBA chief executive Eric Galbraith says that they support the move by the FSA to withdraw the product, claiming it is ‘excellent news for the customer’ as the single payment protection sold by lenders ‘has proved to be bad value in many cases.’
Galbraith adds however, that PPI can be a useful product and customers should be aware that there are many options available offering wider cover and often cheaper, from providers other than where their loan was purchased.
The advice is to use an insurance broker who specialises in PPI policies, who will be able to tailor a package to suit individual requirements.
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