The Association of Finance Brokers has launched a payment protection insurance checklist to give members guidance on PPI sales procedures.
The checklist has been produced in response to the Office of Fair Trading’s damning report on PPI which found that providers are making massive profits on the back of low claim ratios.
The FSA has also urged sellers of PPI to review their sales practices after the regulator identified ten key concerns following thematic work undertaken in November 2005. The concerns included poor quality advice and lack of compliance with product and price disclosure rules.
The AFB’s checklist covers areas which members should address including non-advised sales, inducements and sales targets and risk of inappropriate sales.
AFB’s sister trade body The Association of Mortgage Intermediaries associate director Rob Griffiths says: “Members should consider the issues already raised by both the FSA’s and OFT’s work and use the AFB factsheet to review their firm’s PPI sales procedures to ensure they are compliant with current regulation.”