FSA and OFT are consulting on guidance to firms in relation to payment protection products, which may be regulated by either regulator and include short-term income protection products and debt freezes or waivers. The regulators want to check that firms marketing these products, as the market moves away from payment protection insurance, will properly consider the needs of consumers. The regulators want to see that firms have:
- identified the target market for protection;
- ensured any cover meets the needs of the market; and
- ensured the product does not create any barriers to comparing, exiting or switching cover.
OFT says consumers must be clear about the nature, price and implications of the products. Comments will be coordinated by FSA and the consultation closes on 13 January 2012. (Source: FSA and OFT Consult on Payment Protection Product Guidance)