Re: FSA delays PPI reforms
On paper the FSA are there to protect the consumer. In reality they are a long winded way over the top organisation that concentrates on all the wrong areas of the financial industry and desperately needs to live in the real world and start to stop all the crazy things that are going on at the moment.
Payment protection was undeniably miss sold on a daily basis and many people do not know they have it or could never claim on it. Yes the FSA needs to get these people help. Yes they should get their monies back they have paid so far and no more!
However as always there are people that get on the band wagon and ruin it all for the people that really need it. They claim they could never have claimed due to blar blar reason or I didn’t know I had it. They did and wanted it they are just trying it on!
When payment protect was sold no questions where ever asked about existing medical conditions and/or job type, time in employment etc. It was clearly a money making scheme and it worked and made the banks etc a lot of money as they were never going to pay out as they would never have a valid claim!
Going forward the FSA has band the point of sale payment protection insurance which has helped stop the majority of pressure sales which is the reason we are in the c**p we are in at the moment.
I believe that insurance should only be sold by trained professionals and by completely separate companies with no vested interest in the loan/product being protected.
This way only fit and proper advice could be given and in most cases an income protection policy would be much the better product to recommend as this protect the source of the income and not a specific loan/product so is much easier to be claimed on should the user be off sick and only one claim form and not 5 or 6 if you have credit card, store card, loan, car finance, mortgage, HP etc etc.
I was once quoted by my credit card they would insure me for life and accident and unemployment for .79p per £100 owed. Now if I had £5000 on my card that would have cost me £39.50 a month.
Now this would have only paid the minimum payment of £175 for 12 months should I be unemployed or had an accident. If I died it would of course pay clear the balance outstanding!
I said no and when asked why I said I had £175,000 of life cover for 20 years and an accident and unemployment cover which would pay me £900 a month until I was 65 and that together only cost me £29 a month and I was only 36. Not only that I pointed out that any unsecured debt dies with me so why would I need the life element the call strangely ended!
Sorry for long post as you can see I am quite passionate about it all of this the joys of being a financial advisor
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