Payment Protection Insurance providers in the retail sector could be forgiven for thinking they’d been overlooked when it comes to sanctions on selling policies, as they weren’t included in the Competition Commission’s remedial measures to secure better deals for consumers, suggests PPI lobbyist Sara-Ann Burgess from Burgesses.

The Commission announced its proposed remedies for credit providers earlier this month, but omitted the retail sector from its report. Instead it released its provisional decision on remedies for retail PPI providers on 21 November with similar recommendations.

Retail PPI is a small part of the overall payment protection market and relates to protecting repayments for shopping through home catalogues. As is the case with other types of PPI, the cover pays a monthly income to meet bills should the policyholder become unemployed, have an accident or fall sick.

The Commission concluded that, in line with the wider sector, PPI is highly profitable for distributors, they have a considerable point-of-sale advantage, there’s little competition between providers on price and customers have few opportunities to switch products or search for alternatives.
Proposed remedies include;

• Selling PPI separately to merchandise cover (where distributors offer both).
• Banning the sale of PPI within 14 days of the distributor selling credit to the customer. This addresses the point-of-sale advantage and gives customers opportunities to compare products and providers (in turn encouraging greater competition). Although the distributor cannot re-contact a customer for 14 days, customers can proactively contact the distributor and purchase a policy 24 hours after the credit sale.
• Providing a ‘personal PPI quote’, clearly stating the price of an individual PPI policy and its cost when added to the credit product. If this is not given at point of sale, the credit provider must do so when contacting the customer to offer PPI.
• Publishing certain information and messages in PPI advertisements, such as the price of PPI, expressed in a common format of monthly cost per £100 of benefit, as well as monthly cost of PPI per £100 outstanding balance, plus a reminder that PPI is optional and available from other providers.
• Sharing policy information with the Financial Services Authority for use in PPI comparison tables and also with Office of Fair Trading and wider public.
• Producing annual PPI statements containing similar information to the personal quote and encouraging customers to review their policies. This will make any switching decisions easier.

Sara-Ann comments: “I’m delighted to see that home shoppers will also be protected by these recommendations and in future, will be able to make an informed decision as to whether the policies offered by numerous catalogues are a good deal. It would be easy for the retail PPI sector to fall through the net with so much attention focused on the banks and building societies. However, for many people catalogue shopping is a way of life and I hate to think how many customers are being ripped off by unscrupulous providers.”

Although the proposed remedies closely match those recently published, there’s no need for a ban on single-premium policies, as all retail PPI policies are covered by monthly premiums.
Sara-Ann concludes: “Whilst these measures deal with the anti-competitive practices, they will not immediately lower the extortionate premiums currently offered by home shopping PPI providers.

Inevitably, as competition widens, costs will come down, however, I urge people to shop around now – there are numerous independent PPI firms who offer more comprehensive cover at a fraction of the price.”

Independent provider British Insurance charges £3.40 per £100 for unemployment cover, £3.90 per £100 for accident, sickness and unemployment and £1.90 per £100 for accident and sickness. It recently scooped a series of awards from magazines and websites for its products, services and for treating customers fairly.

The Competition Commission is asking for interested parties to feedback on its proposals by 12 December and is looking for them to be implemented within 12 months.

Government moves to prevent widespread home repossessions are doomed to failure, says one influential commentator.

New moves aimed at preventing lenders taking possession of properties until after a three-month waiting period were announced on Monday.

Other measures such as an increase in the upper limit for mortgage interest support, which now rises to 200k, and an extension of the mortgage rescue scheme were confirmed at the same time.

Sara-Ann Burgess is a longtime professional working in the insurance industry. As managing director of Burgesses - a leading independent provider of mortgage payment protection insurance (MPPI) - she is well-placed to pronounce on the latest moves.

She said: “The government’s well-intentioned initiatives will only serve to postpone the inevitable for struggling homeowners. Unfortunately for many that means they will eventually be made homeless despite the raft of new measures.

“That’s because as the economic crisis deepens, and more and more firms go to the wall, there simply won’t be the jobs in the marketplace for those that have become unemployed to target.

“So unless the government measures were to last for at least a year, when the most optimistic commentators predict the upturn will begin, then what you are doing is simply postponing the inevitable as banks will be able to apply for repossession after the three months has expired.”

Another major failing of Chancellor Alistair Darling’s announcement is that it only applies to borrowers that have loans through the major lenders.

The past decade has witnessed a boom in the numbers of people obtaining loans through the sub prime or secondary market. The Chancellor has been unsuccessful in persuading most of these players to back his plans.

“These institutions are much more likely to want to quickly repossess properties to shore up their battered balance sheets. It’s also the case that these are the firms that were most attractive to the self-employed and those with poor credit ratings.

“Unfortunately it is going to be the self employed and the small businessman that is the first to feel the effects of any downturn and in need of help,” added Burgess.

Burgess also pointed out that since savings rates in the country are at their lowest ever levels, many people would be placed in the invidious position of choosing between paying the mortgage and putting food on the table and paying for kids’ clothes.

“The government has to be seen to be doing something. Unfortunately little of what has been proposed is of real help. Just like most mortgages will not be given the green light without buildings insurance being in place, it should be incumbent on lenders that they ensure that mortgage borrowers have adequate insurance in place to keep the roof over their heads should the worst happen and they are unable to make the repayments because of unemployment, accident or sickness.”

Feedback from the Financial Ombudsman Service (FOS) indicates lenders are continuing to ignore calls to treat customers fairly when selling Payment Protection Insurance, says PPI lobbyist Sara-Ann Burgess from independent provider, Burgesses.

According to the FOS the top three causes of complaint are;
1. Customers have a policy they don’t want. They either thought the cover was automatically part of the loan agreement or were led to believe they couldn’t take out a loan without PPI.
2. Customers are unable to claim. Exclusions apply because of the state of their health, their job (ie seasonal worker or on a contract) or age.
3. The cost of the policy wasn’t explained.

Payment Protection Insurance provides a monthly income should the policyholder lose their job, become sick or have an accident.

Sara-Ann comments: “Despite widespread condemnation of lenders’ unscrupulous selling tactics, consumers continue to be conned into purchasing expensive and often unnecessary policies. Implementation of the Competition Commission’s recent rulings outlawing this ‘selling through stealth’ cannot come quick enough.”

Complaints to the Ombudsman soared in the period from 1 April to 30 September this year with 13,119 PPI cases already registered. “This is well ahead of the 10,652 received for the previous financial year,” explains Sara-Ann. “What’s so worrying is that figures are continuing to rise despite PPI providers assuring regulators they are ‘treating customers fairly’. It’s more like treating themselves to customers’ money.”

Another common grievance is the level of single premium refund offered to customers who pay their loan off early. “It’s shameful,” continues Sara-Ann. “Day after day we’re hearing cases where cash-strapped consumers are being ripped off by High Street banks and building societies – institutions that supposedly built their reputation on trust are clearly abusing this.”

Recent FOS case studies include a couple in financial difficulties who took out a succession of loans and were sold single premium PPI policies with each loan. The Competition Commission has called for the sale of single premium policies to be banned as consumers end up paying interest on both their loan and the premium.

Having realised their initial loan wasn’t enough to manage their debts, the couple approached another lender who offered a new loan for a higher amount. This allowed them to settle the existing loan, clear an overdraft on a current account and pay off several credit card and other bills. To keep their repayments low, the couple opted for a 10 year loan. Unfortunately, they still had financial difficulties and within 18 months approached their lender for more help. The lender agreed a new higher loan, spread over 15 years.

When they realised PPI was included in all the previous loans, the couple asked for a premium refund, but was offered a paltry settlement. When the FOS stepped in, it was found that not only were the couple paying interest on PPI for the entire lifetime of each loan, but that the PPI cover only lasted five years, well below the length of their agreed repayment periods.

The FOS berated the lender for encouraging the couple to buy the policies, citing the sale as inappropriate, in light of the couple’s financial circumstances, and asked the lender to pay back the amount the couple had paid on the policies, with interest.

Sara-Ann concludes: “This is taking advantage – the couple were repeatedly paying for PPI which would only cover them for 5 years. Whilst you probably wouldn’t be granted loans of this nature now, it evidences just how immoral lenders are – knowing a couple are in financial difficulty and piling up more debt for them. Irresponsible lending like this has contributed to the current economic crisis.

“Consumers must borrow responsibly and question everything, especially the exclusions and small print. PPI isn’t a condition of the loan - policies can be purchased independently from providers offering more competitive and wide-ranging cover.”

Independent firm British Insurance recently scooped a series of awards from magazines and websites for its products and excellence in service and treating customers fairly.

Homeowners worried about meeting their mortgage commitments will take little comfort form Alistair Darling’s pre-budget report - he’s failing to provide immediate financial support for those who lose their jobs and postponing, rather than removing the threat of repossession, says Payment Protection Insurance lobbyist Sara-Ann Burgess from Burgesses.

Included within the Government’s proposed measures is an extension of the Support for Mortgage Interest Scheme which helps homeowners by paying the interest on their mortgages when they become unemployed.

It used to cover mortgages of up to £100,000 but has now been doubled to £200,000.

However, homeowners cannot claim any benefit until they’ve been unemployed for 13 weeks, which in Sara-Ann’s opinion, defeats the object: “Given that lenders are keen to initiate repossession after one or two missed mortgage payments, a 13 week gap is far too long – and then the payments only cover the interest so it will have little impact on the overall amount owed.

“These measures simply pile up debt, and this is further evidenced by the Chancellor’s call for lenders to defer initiating repossession action for three months of the owner going into mortgage arrears. If the Government’s benefits don’t start until after 13 weeks, it may be too late for many homeowners who find themselves on the receiving end of repossession orders. This so-called support package is clearly flawed.”

The Council of Mortgage Lenders (CML) concedes a three month deferment may only postpone rather than change a lenders decision to seek possession and the housing charity Shelter suggests more needs to be done. It recommends lenders allow homeowners to switch to interest-only mortgages and extend their repayment terms, plus provide options for outstanding debts to be added onto the mortgage and repayment holidays.

Sara-Ann continues: “Whilst I applaud any financial initiatives that relieve the pressures on those unable to maintain their monthly mortgage payments, the harsh reality is that the debt will still have to be paid. There is another alternative - PPI. This cover pays more than just the monthly interest, it meets the cost of the whole of the loan and interest for up to year if you lose your job, and the payments are from day one.

“PPI cover is sold per £100 of benefit and purchasers can opt for unemployment or accident and sickness cover, or all three. The premiums are not sky-high as many lenders would have you believe, independent firm, British Insurance, charges £3.40 per £100 for unemployment, £3.90 per £100 for accident, sickness and unemployment and £1.90 per £100 for accident and sickness.”

The Government also proposes a mortgage rescue scheme where it buys back the home and rents it out to the former owners, or buys a proportion of the equity. Sara-Ann concludes: “I’m not sure I’d want to be paying rent to the Government or allowing it to have a stake in my property. As the CML says ‘supporting the income of householders in difficulty is just as important as giving people a three month amnesty on repossession’.

“PPI provides vital and immediate financial support - an unemployment-only premium of £20.40 per month buys a monthly benefit of £600, or up to £7,200 a year. I don’t know of any other ‘support’ mechanism offering a comparable return. I wonder if the Government was referring to PPI, rather than itself when it called its pre-budget report ‘Facing Global Challengers: Supporting people through difficult times’? ”

Repossession, redundancy and recession are driving the need for good quality payment protection insurance (PPI) advice, according to Sara-Ann Burgess, director at PPI specialist Burgesses, and a longstanding campaigner for change in the market.

Despite the emergency measures to kick start the economy, announced by the Government yesterday, Burgess said borrowers across the country would be put under a huge strain in the coming months and that this was already being reflected in industry figures.

According to data released by the Council of Mortgage Lenders (CML) for the third quarter of 2008, repossessions totalled 11 300 for the period, up from the 10 100 recorded in the previous quarter. This represented a jump of 12% and according to the CML, repossessions will total 45 000 during the year as a whole.

“The Chancellor may have cut the rate of VAT and introduced a new rate of income tax for those earning over £150 000, but will this really help to avoid thousands more people being made redundant?” questioned Burgess.

“Whether or not these measures manage to stimulate the economy will be a moot point for the thousands of homeowners who are going to be forced out of work and out of their homes as the recession takes hold,” she said.

With tens of thousands of redundancies at firms such as BT, Virgin, HBOS and RBS in the pipeline, the recession was going to hit people right across the country and despite the efforts made by politicians, they were unlikely to be enough to prevent many more from falling into significant hardship.

Burgess said there had not been a more important time in the last 15 years for consumers to assess their financial situation and protect against the storm that was set to last well into 2009 and beyond.

“At a time when budgets are tight and jobs are precarious it is really important for consumers to get the right level of protection in place and to find policies that really meet their individual requirements,” said Burgess.

Burgess said it was time for the PPI sector to at last show its true worth and move past the problems that have plagued it in recent months and years. Following industry reviews, improvements were being made in the PPI market and by working with established, proven and ethical intermediaries, it was possible for customers to get excellent value policies that would protect them into the future.

Burgess explained: “Ethical, customer focused businesses like British Insurance have stood out in recent years and as the PPI market opens up then these businesses can help customers get away from the expensive and poorly designed policies offered by many high street providers and access the level of low cost, flexible PPI they really need.”

Repossession, redundancy and recession would continue to sharpen their teeth on UK consumers and Burgess said they had to make sure they knew what lay ahead and had made preparations to deal with it effectively.

The revelation that more than one in five homes is for sale because owners cannot afford mortgage repayments could be evidence that intermediaries have ‘been asleep at the wheel’. That’s the belief of Sara-Ann Burgess, the Managing Director of independent protection insurance specialist Burgesses.

She says that if the majority of mortgage brokers had been carrying out their duties in a professional manner then far fewer homeowners would be in danger of losing the roof over their heads.

A new survey of estate agents suggests that at least 5000 properties a week are being put up for sale by “forced downsizers”.

Burgess explained: “When mortgage brokers were brought under the umbrella of regulation by the Financial Services Authority (FSA) almost four years ago they immediately had a duty of care to their customers.

“That duty of care extended to much more than arranging a mortgage or remortgage for their clients. They were also duty-bound to point out the dangers of missing mortgage payments and offering solutions to mitigate such a situation occurring – especially if this was caused by the borrower being unable to make repayments because of accident, sickness or unemployment.

“A competent financial intermediary should be advising their clients to take out insurance cover to ensure peace of mind for when the hard times inevitably do arrive. The fact that so many people are now facing or dealing with the nightmare of repossession suggests some brokers have been asleep at the wheel.”

Presently mortgage brokers need not be on a list of approved persons unlike investment advisers. However the FSA says is reviewing whether it needs to regulate every single mortgage broker instead of firms as a whole and their directors. Registration will only be imposed on mortgage brokers if it’s found to be necessary for consumer protection.

But that does not prohibit the FSA taking action to protect customers. A UK mortgage broker was recently fined after he was found to have given advice to consumers that put them at increased risk in the current financial climate. The regulator said at the time that “giving customers the right advice and treating them fairly” was crucial.

Quarterly figures published by the Council of Mortgage Lenders show 11,300 homes were repossessed in the three months to the end of Sept that’s a rise of 12 per cent on the previous quarter. Mortgage possession orders were up 24 per cent at 29,516 in the third quarter compared to the same period last year, according to Ministry of Justice figures. Possession orders - which are decisions made by judges in the county courts - were up 3 per cent on the second quarter of this year.

But many homeowners are unaware that peace of mind can be purchased from independent insurance outlets such as British Insurance where mortgage payment protection insurance premiums for a 25 year old start at £1.60 or around 25% of the average price charged by the top 10 lenders.

The current crisis for those struggling with mortgage repayments has been exacerbated by the recent stonking 1.5 per cent reduction in the bank base rate. Up to 90,000 hard up homeowners on benefits and getting mortgage interest support will see that reduced by 1.5 per cent – even if the interest on their mortgage is not cut by the same amount.

That could mean a 2k per year shortfall and the consequent threat of repossession.

Figures released by the Council of Mortgage Lenders, detailing an alarming growth in the number of homeowners falling into mortgage arrears, has prompted Payment Protection Insurance lobbyist Sara-Ann Burgess to urge homeowners to purchase cover that pays a monthly income should they lose their jobs.

“There’s a clear correlation between the increasing number of job losses and mortgage arrears, so it makes sense to buy a policy that will ensure continuity of income to meet monthly bills. PPI provides a valuable financial safety net for people whose income is interrupted through accident, sickness or unemployment.”

According to figures released today, the CML reports the number of households at the end of September 08 with more than three months of mortgage arrears was 168,000. In June 08, the figure was 155,600, whilst in March it tallied 142,000.

It’s widely-recognised that the economic downturn, slow income growth and increases in food and fuel costs have taken their toll and the CML predicts the number of households in arrears by the end of the year will far exceed its previous forecast of 170.000.

Sara-Ann continues: “168,000 households in arrears by Q3 this year equates to around 613* households per day unable to meet their loan repayment. This figure is staggering and frightening. Whilst I realise PPI may not be suitable for all, I do wonder how many homeowners could have given themselves some financial breathing space with a policy that pays their bills for up to a year.”

PPI cover is sold per £100 of benefit and purchasers can opt for unemployment or accident and sickness cover, or all three. One of a few to continue offering employment cover only is independent firm, British Insurance. It charges £3.40 per £100 for unemployment, £3.90 per £100 for accident, sickness and unemployment and £1.90 per £100 for accident and sickness.

The CML paints a bleak picture and is asking members to avoid repossession at all costs and suggests the Government concentrates on providing more assistance in next week’s pre-Budget report. It concedes that lenders cannot change the causes of financial difficulty, ie unemployment, and is aware the arrears situation will get worse before it gets better.

“It’s all very well calling for lenders to be more sympathetic to homeowners’ dilemmas and lobbying the Government to do more,” says Sara-Ann, “but monthly bills still won’t get paid and debts will continue to rise. I believe the only immediate practical solution is PPI. A small monthly outlay could pay rich dividends over the course of a year if the unexpected was to occur.”

Repossession statistics stand at 11,300 for the end of September. In June 08, the figure was 10,100 and it March it stood at 8,800. Sara-Ann concludes: “To the end of September, some 41** homes were repossessed daily. And this doesn’t take into account properties that have repossession orders hanging over them.

“More has to be done by the lenders and Government to prevent this happening, but also insurers have a duty of care to ensure their cover is accessible and affordable to all and consumers need to be aware of the options open to them.”

It will take at least a year for recommended changes to the payment protection insurance (PPI) market to come into effect leaving the potential for many thousands to fall foul of old problems.

Sara-Ann Burgess, a longstanding campaigner for better standards in the market and a director at specialist PPI firm Burgesses, said she was frustrated at how long change had been at coming and how slowly it was being put into effect.

“Of course I’m delighted that the PPI market is being given a much needed overhaul, but it also depresses me that it has taken so long.”

Burgess said she had been campaigning for change for over a decade and in that time tens of thousands of consumers had bought into policies that were unsuitable, over-priced and poorly designed.

If action had been taken more quickly, Burgess said all of these consumers could have been protected from making these misguided purchases and the PPI market would have long since offered the products that consumers so desperately need.

“It is wonderful news that single premium policies will be outlawed and I am very happy that there will be a focus on providing a much higher level of information to consumers, enabling them to make an informed comparison about the policies they are being offered.”

However she said the Office of Fair Trading had referred the PPI market to the Competition Commission back in February 2007. Prior to that Citizens’ Advice had completed a long and critical report of the market and there had been numerous other pieces of research conducted by independent reviewers such as Defaqto, which had also highlighted major failings.

Indeed each and every review undertaken by the Financial Services Authority has found significant problems within the PPI sector and despite the recommendations of the Competition Commission it will not be until the end of 2009 or even into 2010 that they are put in place.

“The last 12 months have shown us how quickly things can move in the financial markets,” said Burgess. “They have also shown us that where there is a will there is a way and that through concerted and focused attention, huge changes can be brought into effect very quickly. Why the PPI market has been allowed to stagnate over the years remains a mystery and the boil should have been lanced long ago.”

Burgess said she hoped the focus that was now being put on creating an open market would help independent intermediaries like British Insurance, that had proved their commitment to providing excellent products to consumers, play a more prominent role going forward.

However she felt very strongly that those who had allowed the market’s worst abuses to continue under their noses were held to account.

“I have known that consumers were being ripped off for many years and have tried to publicise the problems they have faced. Regulators and industry professionals have also understood the problem and yet it has been allowed to drag on. What we need is faster and more effective controls in the financial markets rather than the lumbering processes which we currently employ.”

Burgess said these process may get there in the end, but that they allowed too many consumers to be unnecessarily mistreated along the way.

The Financial Ombudsman Service reports it is handling 100 Payment Protection Insurance complaints a day. “This,” points out PPI lobbyist Sara-Ann Burgess, “further fuels concerns that consumers are either unwittingly purchasing cover they don’t need or are confused by jargon and taking out policies they will never be able to claim on.”

Despite the Payment Protection sector coming under close scrutiny from the Competition Commission and a recent announcement of proposed remedies designed to ensure providers treat consumers more fairly, complaints continue to rise at an alarming rate.

In the financial year up to 31 March 2007, the FOS received 1,832 complaints. The following year, up to 31 March 2008, it handled 10,652 cases – an increase of over 580%.

The independent complaints expert predicts next year’s tally will be even higher. In receipt of 100 complaints a day, or 2000 monthly, staff expect the figure up to 31 March 2009 to top 24,000.

Sara-Ann comments: “This is staggering. The dubious sales practices of immoral providers are coming to light with more and more people realising they have policies that aren’t worth the paper they’re written on. The rising complaint figures also evidence the incompetence of firms who are unable to deal with customers at their level, forcing the aggrieved to turn to the FOS.

“I fear the FOS statistics will undermine consumer confidence and turn people away from PPI, which in my view, could leave them financially exposed to hardship should their income be interrupted.”

The majority of cases are against those with the biggest market share – 11 financial services groups that offer loans and insurance. Around 50% of cases are upheld and single premium policies generate the most complaints (where the premium is added onto the cost of the loan and the consumer ends up paying interest on both). The Commission has called for single premium products to be abolished.

To put the scale of PPI mis-selling into context, the second most complained about general insurance product is motor with 6009 cases received last year and around 40% upheld.

Sara-Ann concludes: “Motor is dwarfed by PPI and I worry this is the tip of the iceberg. However, rather than turn away from this product, it’s important that in this current climate people purchase a financial protection policy – it will provide a monthly income should they lose their job, have an accident or become sick.

“Prior to purchase, consumers must question whether they’re eligible for the policy and if they are, check out the small print and any exclusions before signing on the dotted line. It’s also worthwhile asking whether the provider has received many complaints about its products or service – a good indicator of whether it treats customers fairly.

“There are those out there, such as independent providers like British Insurance, who have never received a customer complaint about its products or service. So I urge consumers to shop around, don’t feel pressurised into buying cover from the credit provider and look out for companies who explain things simply and without jargon.”

Now the surprise element of the credit crisis has gone, consumers cannot let themselves become immune to the everyday threat that it poses to their own financial well-being.

Sara-Ann Burgess, payment protection insurance (PPI) lobbyist and director at specialist firm Burgesses, says consumers cannot become blind to the challenges that lie ahead.

“We have all been very quick to criticise the banks, brokers, regulators and politicians in light of the financial storm they have managed to cook up. However, consumers also have to take a measure of responsibility for their own financial situation and make sure it is adequately protected into the future.”

In particular Burgess pointed to the latest Inflation Report from the Bank of England, which claimed we were up to our necks in: “The most serious banking crisis since the outbreak of the First World War.”

The report said the Bank of England now believed that the country was already in recession and that the outlook for economic activity in the coming months was bleak. According to the research, unemployment is rising at the fastest rate for 17 years and consumer demand continues to fall.

“People simply cannot afford the financial headlines to pass them by and find themselves embroiled in avoidable personal strife because they have not made adequate provisions for their future,” said Burgess.

She admitted it was easy to become immune to the continually gloomy outlooks and forecasts, but said it was foolish to ignore them as somebody else’s problem.

“Some of the country’s biggest employers are making people redundant by the thousand. Smaller businesses at the other end of the scale are also finding it difficult to get by. When PPI is available for tens of pounds a month and will protect workers and their families should they fall prey to accident, sickness or most possibly redundancy, then this is something they really need to consider.”

Ongoing changes in the PPI market have created better value and choice for consumers and Burgess urged them to use one of the independent intermediaries working in the sector to make sure they got the best deal possible.

“There has always been a huge difference between the cheapest and most expensive PPI policies as well as the level of cover they provide. Working with a firm like British Insurance will help consumers get straight to a policy that provides for their needs, offers excellent value, and which gives them the flexibility they need in today’s environment.”

The UK has not been in a recession since the early 1990’s and there are going to be some difficult days to endure in the coming months. We may all have been surprised by the speed and strength with which the financial crisis has hit, but now it is here there is no excuse for those who continue to get caught out.

Burgess said: “If warnings are to make a difference, people have to head them. Hopefully they will and by investigating their PPI needs and putting insurance in place where necessary, thousands of consumers can insulate themselves against the worst of the economic downturn.”