Sweeping out the profiteers
In recent days the FSA has revealed that it is undertaking 'a major project' to review the sale of payment protection insurance, following a barrage of criticism from the press, consumer groups and the Financial Ombudsman Service.
As an insurance broker specialising in the sale of payment protection insurance, I do not consider this to be a problem, or fear its consequences.
Quite the contrary, in fact. I see it as analogous to the Factories Act which was introduced in Victorian times to protect legitimate businesses from competitors who were willing to put children up chimneys.
Today, by forcing lenders to clean up their act and stop the outrageous profiteering from consumers, the FSA will provide a level playing field for brokers who, by offering good value products, can claim a share of the £5bn in annual commissions that are available in the UK from payment protection insurance.