Archived Posts Lists

Australian Regulatory Compliance Review
Australian Technology and IP Business
Credit Union and Mutual Law
National Consumer Credit Reform
Personal Property Securities Australia
Longview Business Insights
Australian Private Health Insurers
Wills, Trusts, Super
Mutuals Resource Centre


Commonwealth legislation
Corporate Governance
Not-for-Profit links
Regulator Links

March 13, 2012

Consumer credit insurance: the UK experience

The UK Financial Services Authority is currently managing a massive process to compensate consumers who were "mis-sold" payment protection insurance (their equivalent of consumer credit insurance).

The claims relate to circumstances where people say they were sold PPI but:
• did not know they had been sold it
• would not have been able to claim under the policy due to exclusions or limitations (for example a number of policies did not provide cover for people who were self-employed), and
• did not need the policy as they had sufficient cover elsewhere.

According to the FSA, £1.9 billion redress was paid to customers in 2011.

In Australia ASIC's report 256 published in 2011 identified some risks in sales practices but not on the scale now revealed in the UK.

BBC News

Print This Post Print This Post

Posted 13th March 2012 by David Jacobson in legislation, responsible lending