PPI providers advised over customer service
(02 March 2007)

Providers of payment protection insurance and store cards are being urged to treat their customers more fairly.

Website Moneyfacts.co.uk has commended the Financial Services Authority for fining GE Capital Bank and Capital One Bank for payment protection insurance (PPI) failures but is calling for the area to be investigated in more detail.

"An area that Moneyfacts.co.uk feels has been somewhat overlooked in the furore of discussions surrounding overpriced products, inflexible single premium policies and general sales techniques surrounding PPI is the manner in which credit card and store card PPI is advertised," said Andrew Hagger, head of news and press at the website.

According to Mr Hagger, card providers quote a sum per £100 of the outstanding balance on an account when working out how much PPI insurance will cost; however this method means that the actual benefit received by the account holder can vary.

The website goes on to call for the Competition Commission to consider stipulating that premiums be quoted for the level of benefit received.

Recently, financial company Defaqto warned that complaints about the mis-selling of PPI are likely to add up to tens of thousands.