It has been reported today that payment protection insurance (PPI) complaints continue at very high levels. The Financial Ombudsman Service has reported record levels of complaints of mis-sold PPI, running at 11,000 per week for the three months from October to December 2012, double the rate seen in the previous three month period.
While there seems to be no end in sight to the mis-selling saga, the industry is developing new payment protection products and product features which are designed to meet the same consumer need, or which have a similar object or effect as PPI. These products include short-term income protection products, debt freeze and debt waiver. The FSA and OFT have combined to publish guidance on these products earlier this month, guidance which is very much intended to steer product developers away from a repeat of the issues we have seen with PPI.