The mis-selling of Payment Protection Insurance (PPI) has had a profound effect on the industry, the regulators and most of all on us, financial consumers. But what is going to stop mis-sold PPI from rearing it’s ugly head again? Well, new regulations state that from October PPI cannot be sold alongside a credit agreement and lenders must wait seven days to contact a customer about the insurance product. The idea behind this is to encourage people to look around for the best product for their needs and to stop lenders shoe-horning uncompetitive cover in at the point of sale.

As well as regulatory change, there has been a shift in public perception of the product, people are more aware of it than ever before and this alone may well prevent suprise PPI costs being found on statements. But despite these preventitive steps, possibly one of the best of all is being ignored – the introduction of professional requirements for advisers selling protection. The FSA is currently looking into the costs and benefits of requiring advisers of term assurance, critical illness cover (CIC) and income protection (IP) to attain qualifications, yet they have excluded PPI from the consultation. Maybe it’s replacement in 2012 will think differently.

Related posts:

1. Mis Sold PPI Claims Can Be Prevented By The Ban
2. The Mis sold PPI Saga Comes Full Circle – You Can Now Get Free Cover
3. Mis-sold PPI And Other Products Getting Political Attention
4. PPI Claims Levy To Be Charged Through Compensation Scheme
5. PPI Mis Selling Rule Changes Delayed