Level playing field for borrowers at last as FSA kicks point-of-sale PPI into touch – but independent products still best buy

BORROWERS finally face a fairer future now that the Financial Services Authority has brought the curtain down on point of sale PPI, says independent payment protection provider.

“This is the call to action that had been needed for so long,” said MD Shane Craig.

“It’s commendable that the FSA has moved so quickly on this following the Competition Commission’s recommendations last month to scrap point-of-sale PPI.

“All lenders have no choice now but to fall into line and relinquish the advantageous position they have held so long on this issue.”

But whilst borrowers now have the crucial breathing space they need to consider all the options open to them before choosing a PP policy, there’s still the matter of cost to take into account, adds Craig.

“Borrowers need to be aware that as far as cost goes, their lender’s policy is still likely to be more expensive than a standalone product,” he said.

“Consumers buying protection from a dedicated independent provider can be confident that the premium they pay is not driven by the need to boost profits or plug holes left by the volatile economic climate.”