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UK mortgage holders warned about payment protection

Date: Mon, 07 Nov 2005

UK mortgage holders are being warned to consider the added cost of payment protection as well as double-checking the small print on their current policies.

Citizens Advice is calling on the Office of Fair Trading (OFT) to investigate the payment protection insurance (PPI) sector following a rise in complaints about products and allegations of mis-selling.

A recent Financial Services Authority's (FSA) report concluded that many companies within the industry are failing to provide for customers' needs and actually increase debt levels by refusing to pay out.

"The FSA report highlights the extent to which poor sales practices are endemic within the industry, and the extent to which incentives are leading to mis-selling. It confirms many of the problems we have highlighted, including inappropriate sales and very poor information on cost and cover," said Dan Vale, Citizens Advice's head of social policy.

Citizens Advice hope that a OFT investigation would eventually lead on to increased regulation over the selling of payment protection schemes to UK mortgage holders as well as ensuring increased customer service standards.


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