Skip navigation | Skip to footer
 

Payment protection products

24 January 2012

Introduction

Payment protection products (Adobe Acrobat Document 40kb)

Citizens Advice warmly welcomes this joint guidance from the Financial Services Authority (FSA) and Office of Fair Trading (OFT). We have been seeing problems with payment protection insurance for many years including mis-selling, poor claims administration and poor value for money for consumers. Citizens Advice is very pleased that conduct and competition regulators have recently shown a robust and persistent determination to bring these problems under control.

It would be a massive failure regulatory failure if these problems were able to return through a new generation of products that avoid the rules and remedies set up to deal with Payment Protection Insurance (PPI) problems. Therefore we strongly support early and joint action by the FSA and OFT to prevent consumers of mortgage, secured and unsecured credit from experiencing these problems again. The current experience of dealing with widespread PPI problems highlights the value of pre-emptive cross market interventions to stop consumer detriment before it can take hold.