New research by the Financial Services Authority (FSA) shows many consumers may have been mis-sold PPI.
The FSA’s Consumer Purchasing and Outcomes Survey found that up to a quarter of consumers had bought Payment Protection Insurance (PPI) with a mortgage or other credit agreement without realising that it was optional.
Furthermore, a fifth were unable to pinpoint why they had bought the policy when asked, with more than half citing reasons relating to ‘security’, suggesting that many policies may have been mis-sold.
The survey also covers areas including mortgages, personal pensions, investments and general insurance and annuities products.
The research looks into whether consumers received and understood key product details, the factors that influenced them in deciding to buy and their post-sale experience.
Take action on PPI
Phil Jones, Which? personal finance campaigner said: ‘The FSA needs to ensure disclosure documents are clear so consumers get the information they need when buying from the financial services sector. All too often consumers are unclear about what they are buying, and can end up paying for products they don’t need or understand.’
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