There is mounting pressure on the government to crack down on...
There is mounting pressure on the Government to crack down on payment protection insurance (PPI) providers after financial research company, Defaqto, found that consumers waste £350m on the policy every year.
Defaqto said its research had uncovered that a massive £350m is wasted on policies which do not pay out.
It said clients are failing to understand what the policy covers, with only one in three online loan providers allowing customers to see the full details of the policy before it is incepted.
Defaqto associate director Brian Brown said: “Insurers should conduct a proper customer demands and needs analysis before making a recommendation to take out this insurance.
“They should also spend more time explaining to the customer what information is required and use common terminology and graphics to explain how their policies work.”
