I was interested to read Malcolm Padgett's letter "PPI perceptions" (Letters, 16 February).

For someone who has ‘specialised in the regulation of the PPI market for over 25 years' his remarks seem misplaced, given that this product was not regulated until last year and the FSA had to issue a ‘Dear CEO' letter, a matter not to be trifled with.

And we have the consumer lobby and the OFT questions. Here are some facts:

  • The products are overpriced
  • The cover is often inadequate, for example. high deductibles
  • The sales process needs to be unbundled
  • Single premium policies need to be outlawed.
  • While the increasing complaints issue is extremely important, the fact that the level of claims is minimal in comparison to the premium collected, means that many consumers do not have the opportunity to realise they have been sold an inadequate policy.

    It's time for this product and sales process to be reviewed. To suggest this issue is media propaganda is merely trying to cloud the issue even further. To suggest that the economy may lose a key protection product at just the time it may most be needed is in itself scaremongering.

    The consumer needs to be informed that there are better or at least similar products available at a more economical cost.

    Sara-Ann Rosamond