In 2005 the Office of Fair Trading received a super complaint from the Citizens Advice. The complaint related to mis-selling of payment protection products with some firms offering cover that consumers could not claim against for huge premiums. While loan protection can be a lifeline to those who are eligible to take out a policy there are exclusions which mean it is not suitable for everyone.
While the Office of Fair Trading investigated, the Financial Services Authority (FSA) did also. The FSA handed out fines to several firms and then referred the sector to the Competition Commission. They are currently conducting an in-depth review of the sector and while some changes have been seen it was recently revealed that the FSA investigated over 4,000 cases in 2007.
While recommendations had been laid down since the early days of the investigations, mis-selling of loan protection and related products has doubled. There are currently around 20m payment protection policies in the UK and it is thought that around half of these could have been mis-sold which is a very worrying thought indeed. There has been some improvements, however some firms are still carrying on in their old ways and have made very little progress […]

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