Sales pessimism claims are 'way off the mark'
Bad economic news has driven sales of payment protection insurance (PPI) up by 146% over the last quarter. The figure from Paymentcare has led the PPI provider to believe claims that the Competition Commission's recent proposal to ban point-of-sale PPI will result in huge numbers of borrowers going without protection are "way off the mark."
The company said it has seen those who had considered the idea of PPI when they took out their loans but decided the cost of their lender's own protection too high revisiting the product.
Paymentcare managing director Shane Craig, said: "Our experience tells us that borrowers are a lot more clued up these days and aren't just waiting to be spoon fed financial advice. They are, thankfully, taking control and that's going to make all the difference going forward."
However it may take over a year for recommended changes to the PPI market to come into effect. Sara-Ann Burgess, director at specialist PPI firm Burgesses, said it will not be until the end of 2009 or even into 2010 that the recommendations are put in place.
"The last 12 months have shown us how quickly things can move in the financial markets," said Burgess. "Why the PPI market has been allowed to stagnate over the years remains a mystery and the boil should have been lanced long ago."
Meanwhile the Association of Finance Broker, the secured loan trade body, has noted a benefit to intermediaries as the 14-day wait period does not apply to them.
