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  • FIRST POST
    • MSE Guy
    • By MSE Guy 11th Dec 09, 1:59 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: PPI sales ban still months away
    • #1
    • 11th Dec 09, 1:59 PM
    MSE News: PPI sales ban still months away 11th Dec 09 at 1:59 PM
    This is the discussion thread for the following MSE News Story:

    "The ban on the flogging of debt insurance is unlikely to come into force until 2011, it emerged today ..."



Page 1
    • ~Brock~
    • By ~Brock~ 11th Dec 09, 2:28 PM
    • 1,600 Posts
    • 1,519 Thanks
    ~Brock~
    • #2
    • 11th Dec 09, 2:28 PM
    • #2
    • 11th Dec 09, 2:28 PM
    "A ban on the sale of debt insurance is still at least a year away after the Competition Commission (CC) revealed it will only lay out its next steps to protecting consumers next summer."



    Protecting Consumers? Eh?


    How is banning the sale of a product that protects consumers classed as "protecting consumers".


    Improve the standards of advice. Fine!

    Make the product better/cheaper. Great!

    Ban the sale of the product at the only point in time that people actually give it any consideration. Pardon me??
  • petermb
    • #3
    • 11th Dec 09, 3:27 PM
    • #3
    • 11th Dec 09, 3:27 PM
    I am all for banning Single Premium PPI.
    However, there is and always has been a requirement for a product that actually protects people rather than simply a means to providing lenders with additional income streams.

    Lets have a proper protection product that works. Not a one fits all, "guaranteed it wont pay out" con.
    I am a former Broker, former IFA and former compliance officer, for my sins.

    However, I have since seen the light.
    • dunstonh
    • By dunstonh 11th Dec 09, 3:58 PM
    • 98,301 Posts
    • 66,556 Thanks
    dunstonh
    • #4
    • 11th Dec 09, 3:58 PM
    • #4
    • 11th Dec 09, 3:58 PM
    The biggest issue with PPI is that it was allowed to be sold by unregulated, and mostly untrained individuals with sales targets.

    Whilst I am not going to suggest things are perfect, you do not find problems to anywhere near the same level in the regulated advice side.

    The answer isnt to ban the product but to revise the way it is sold and who sells it.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Sol00
    • #5
    • 11th Dec 09, 10:45 PM
    • #5
    • 11th Dec 09, 10:45 PM
    "A ban on the sale of debt insurance is still at least a year away after the Competition Commission (CC) revealed it will only lay out its next steps to protecting consumers next summer."



    Protecting Consumers? Eh?


    How is banning the sale of a product that protects consumers classed as "protecting consumers".


    Improve the standards of advice. Fine!

    Make the product better/cheaper. Great!

    Ban the sale of the product at the only point in time that people actually give it any consideration. Pardon me??
    Originally posted by ~Brock~
    The point is many people are either under the impression they have to take this insurance, or that it is the only provider available, which isn't allowing the consumer to shop around for the best deal.

    They need to be given clear advice that they should shop around for this product at the point of sale.
  • petermb
    • #6
    • 12th Dec 09, 9:33 AM
    • #6
    • 12th Dec 09, 9:33 AM
    The biggest issue with PPI is that it was allowed to be sold by unregulated, and mostly untrained individuals with sales targets.

    Whilst I am not going to suggest things are perfect, you do not find problems to anywhere near the same level in the regulated advice side.

    The answer isnt to ban the product but to revise the way it is sold and who sells it.
    Originally posted by dunstonh
    There is no comparison between monthly payment policies and single premium.
    The costs are a world apart. The true cost of ASU is around 4-5 per month per 100 cover and you can delete the parts that are not required, like unemployment cover for those who are self employed, etc. This can bring the cost down substantially.

    Yes make it regulated, yes make sure people who sell it are fully trained and up to the job, but the fundamental problem is that single premium is made up predominantly of Commissions for lenders and brokers.

    Take that element away and provide policies that fit the needs of the client and then you will have something worth selling.
    I am a former Broker, former IFA and former compliance officer, for my sins.

    However, I have since seen the light.
    • dunstonh
    • By dunstonh 12th Dec 09, 11:11 AM
    • 98,301 Posts
    • 66,556 Thanks
    dunstonh
    • #7
    • 12th Dec 09, 11:11 AM
    • #7
    • 12th Dec 09, 11:11 AM
    There is no reason to have single premium and that should be banned. However, the article made no reference to single premium. It was just about PPI full stop.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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