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Citizens Advice wants OFT to probe payment protection

Citizens Advice is calling on the Office of Fair Trading to investigate payment protection insurance, claiming it is bad value.

The consumer organisation says the product, which produces annual revenues in excess of 5bn, is often highly expensive and excludes many of the most common situations that lead to debt problems.

It claims that banks, mortgage firms and credit card companies often sell the cover just to boost profits.

Direct Life & Pensions sales and marketing director Richard Verdin says the cover is a niche product which is inappropriately sold as mass market.

Citizens Advice is making a “super-complaint”, meaning that the OFT must respond within 90 days.

CA chief executive David Harker says: “At best, the excess cost for minimal benefits makes it bad value. At worst, misselling means the most vulnerable people are parted from huge amounts of money under false pretences.”

Verdin says: “MPPI is a product of last resort and is not appropriate for most people. Alarmingly, it outsells income protection by almost four to one and rising.”

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When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]

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