ARTICLE · 08 AUGUST 2006

Payment Protection Insurance - Attacked on All Sides?

Barlow Lyde & Gilbert LLP

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The PPI sector is currently receiving unprecedented regulatory scrutiny. The possible consequences of this scrutiny are as yet unclear but it seems likely that both the terms on which this insurance is offered and the way in which it is sold will need to change significantly.

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David Strang

The PPI sector is currently receiving unprecedented regulatory scrutiny. The possible consequences of this scrutiny are as yet unclear but it seems likely that both the terms on which this insurance is offered and the way in which it is sold will need to change significantly.

The PPI market has been in the spotlight over the past few years and two different regulators, namely the FSA and OFT, have been actively investigating a variety of market practices. The FSA published an extensive ‘thematic study’ into the sector in November 2005 and this work is being followed up with a view to producing a further report in the autumn of this year. The FSA has been looking in particular at the risk of inappropriate sales and at the quality of advice given during the sales process.

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