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FSA Consultation on PPI Requested From Brokers

The joint investigation by the Office of Fair Trading and the Financial Services Authority into the selling of payment protection insurance should be something that brokers sit and take notice of, according to the Chairman of Protect, an association that represents those working in the UK protection market.

Whilst Steve Devine – the association’s chairman – highlighted that for the moment the investigation was only relevant to those involved with payment protection, the investigations and increased regulation on policies could soon increase to take in personal accident and sickness policies, as well as cover for areas such as unemployment.

Mr Devine’s concerns were linked to the consultation document for the investigation, in which he viewed there to be indications that the stringent analysis taking place actually carried some inconsistencies ‘in terms of what products are actually in scope’, directly addressing the responsible institutions ‘will include the existing personal accident and sickness product markets.’

He continued that ‘the consultation would miss this audience of providers and distributors because of the short duration and the timing of the consultation, and they will have lost the opportunity to respond.’

With PPI continuing to be newsworthy over four years since the initial scandal broke, it will be intriguing to see if Mr Devine’s concerns are founded in reality regarding other potentially affected policies.

For more of the latest PPI news, continue to check into Creditline Financial.

Posted by Shaun Edwards on 26 Jan 2012

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