A company selling payment protection insurance (PPI) says that negative publicity about mis-selling is leaving consumers who have read about the scandal unprotected.
Kevin Williams, managing director of First Call Payment Protection based in Somerset, said: “Consumers have seen so much appalling coverage in the news about the mis-selling of products in the past that they are understandably wary of taking out PPI.
“There has been a lot of one-sided factual coverage about PPI, but unfortunately this has only highlighted the negative mis-selling scandal by banks, building societies and other financial institutions.
“This coverage has not been balanced with any of the good news stories where PPI has saved families financially.
“We are living in uncertain economic times, and with unemployment still rising it is more important than ever that people seriously consider having appropriate protection in case they find themselves unable to work due to accident, sickness or unemployment. These things could happen to any of us.”
Figures recently published by CreditAction.org.uk show that every 15 minutes and 30 seconds a property is repossessed. And an average of 1,639 people a day were made redundant between April and June.
At the same time, according to the FSA, the total volume of complaints to all financial services firms increased by 59% to 3,577,599. PPI accounted for 62% of all these complaints.
Williams said: “Nowadays the industry is exceptionally well regulated and those that tried to make a fast buck have been drummed out. Unfortunately, the industry’s reputation has been tarnished and this has made people wary of the products.
“But this also means there are hundreds of thousands of people out there who would benefit from cover that do not have it.”
He added: “I would like to make it very clear that we do not ‘hard sell’ our products.
“Everything is left to the choice of the individual. We clearly explain the products we offer online but we do not ‘hard sell’ them and have no sales people influencing customer choices. We simply provide clear information on each of the products leaving customers to have full control of the buying process.
“However, we do have a strong customer service philosophy and if a customer needs assistance when buying, one of our customer support team will help guide them through the sales process. If a customer subsequently feels unhappy with the product they have selected and purchased from us, then we do offer a no-quibble refund wherever possible.
“Our policies have helped save many people’s homes and can also protect them from other serious financial issues.”
www.protection.uk.net
Comments
Once a product is soiled by bad sales practices, it is doomed like the endowments before it.
Why would anyone dance through the regulatory hoops to make a small amount of commission, when the massive marketing of claims management firms constantly promises free money for everyone with PPI, albeit often by making fraudsters of them.
Ironically it may have been the regulators encouragement for advisors to consider this cover for everyone, 10 years back that lead the banks into their blind PPI sales campaigns.