Stuart King made it very clear that the market can no longer be allowed to operate as it has operated in the past.Steps are being taken including the implementation of standards that will govern the sale of payment protection insurance. It is also a question of increasing the level of awareness amongst consumers. The Financial Services Authority is also taking steps to govern the strategies and marketing tactics used by sellers to attract customers for payment protection insurance. These measures combined with the existing legal mechanisms available for recovery the money should be enough to undo the damage caused by lenders on the payment protection insurance market.
Is the controversy surrounding payment protection insurance mis-selling real or is it just media hype? Well, the financial services authorities are of the opinion that this problem is a serious one and has affected a large number of individuals who have obtained loans. Lenders have been accused of misguiding customers and convincing them to go in for this policy without any justification.. Other mal practices have resulted in huge profits for lenders. The problem is widespread and has affected a large number of individuals who would have saved a lot of money had they not gone in for payment protection insurance.
There is authentic and clear information that lenders have practiced fraudulent practices to earn more profit by mis-selling payment protection insurance policies. According to Stuart King, who is the head of Market Intelligence of the Financial Services Authority, many dozen firms have been involved in the mis-selling practice. This is not a small number. Considering the reach of these financial institutions, there is a significant possibility of large number of individuals being affected by the mis-selling practices. Further, the manipulation of the PPI claims market has been going on for quite a long time now. The source of information is impeccable and there is no scope for rejecting it without providing adequate proof. In any case, the Financial Services Authority is not known for making such statements without adequate proof.