Payment Protection Insurance Isn't Protecting Consumers

Consumers and consumer protection organisations are increasingly putting pressure on financial providers to make the payment protection insurance (PPI) market as transparent as possible, in order to help consumers gain a better understanding of their financial positions. William Amos, head of retail enforcement at the Financial Services Authority (FSA), warned consumers against financial providers that use pressure sales tactics in order to encourage customers to buy PPI, referencing a recent case in which the FSA had fined online firm Loans.co.uk 455,000 for taking advantage of its PPI customers.

Mr Amos, speaking on BBC Radio Five Live's Wake Up to Money programme, said the fine was enforced because Loans.co.uk had failed to adequately explain what PPI policies cover - as well as what they did not cover. He said:

"It's important when customers go in to buy this product that they understand that they may already have existing cover."

Mr Amos further warned that the FSA could fine other companies for similar practices, suggesting that PPI transparency was an area of financial practice that the organisation took "very seriously". Margaret Cole, the FSA's director of enforcement, further commented:

"Payment protection insurance can provide valuable protection against changes in personal circumstance. But customers should come away from the sale having been given the best possible information to understand that the payment protection insurance is optional, what the policy will and will not cover and how much it costs."

PPI policies have recently come under fire from the Office of Fair Trading (OFT) in the UK as well; in October 2006, the OFT declared that payment protection insurance was failing consumers and recommended that it be investigated by the Competition Commission. PPI, which essentially offers borrowers a security net by guaranteeing their debt repayments in the event of an accident, sickness or unemployment was blasted by the OFT as a policy which was "overly complex", of "poor value" and one which provided "less protection than customers think".

The OFT's damning conclusions on the role of PPI in today's financial market comes after a six month investigation into the PPI industry, which is currently worth around 5.5 billion. John Fingleton, chief executive of the OFT, said:

"Following the work we have undertaken, it is clear that many customers are failed by PPI. There is limited evidence the industry is taking steps to improve the situation, but we believe they will not make major improvements to competition in the market. Given our evidence and the scale of this market, our provisional view is that it would be appropriate for the Competition Commission to investigate further."

While many insurance providers understand the problems and are seeking to address the situation, critics of PPI have argued that generally this type of payment insurance is often overpriced and frequently mis-sold to people who wouldnt be able to claim its benefits if they needed to. The OFT's findings re-emphasise the need for people to choose their insurance carefully, utilise consumer insurance comparison sites, and make use of consumer financial information sites like the FSA. To date, banks have remained curiously silent on the OFT's decision; currently, the banks that earn the most profit from PPI are Lloyds TSB, HBOS, Northern Rock and Barclays.

Growing Old

There is no such thing. You do not Grow, you Un-grow. It starts with your teeth at any age and just keeps going. I have never seen anything that grows old. Aging is not growing. So lets start over. Aging until you are dead. Now I dont want to write a gloomy article here but that is exactly what happens. If you have good health until you die, aging is not too bad for a long time but the closer that last breath comes the more you think about it. I suspect most of the aged come to terms with dying and hope it happens in their sleep. You have had your fun or your misery. Life is going on outside your window but you have to drop out. We old folks have a saying, Growing old is not for sissies. Now I cannot speak for the rich. I am not rich but I was at one time. The old car I drive now is as comfortable as my Oldsmobile 98 was. The food is what I make it. The air is the same. So maybe the rich get to do more and have more laughs. But I sort of have my doubts. I personally enjoy life just as much as if I were on a beach somewhere. I dont realize I am 73 and act and feel like 40. I have what I call The Right Mental Attitude which I have always had from birth. Some folks do not have that and need to work on positive thinking. I dont have a quarterbacks body so I have to work on that, and yes I am a bit behind.

There are two rules. Have a good head. If your head is not right the whole thing sucks. Have as good a body as you can make it. Most of us have a choice about both. Of course when I say head I mean the real you inside that head. You dont have to have any special kind of mind to have the Right Mental Attitude. And mostly, if you keep your hands from stuffing that hole under your nose you can have a good body. I wont mention smoking. That is suicide and I am not qualified to help people with a bad death wish. I mean bad death. The two rules about quality aging are:

1.Right Mental Attitude. I could write a page about that but you know exactly what I mean.

2.Take Care Of Yourself. Thats pretty easy to understand. Those are the two rules for aging until you die, as nicely as possible.

There is one rule for aging miserably and dying poorly. That rule is, Dont pay any attention to the first 2 rules.

When the body breaks down and when you are sick that is the hard part of aging. You folks reading this who are not old do not want to be old and sick. That is hell on earth. So get right in your mind now and start tomorrow to age well. If you get nothing else out of this article, remember this, you are not a military tank. You are an ordinary vehicle made to haul your brain around. Inside that brain is the pilot. You are the pilot. If you let your vehicle set in one spot the thing starts to rot. If you let it do what it does naturally every day, taking care of it with good maintenance and fuel it will pass many junk vehicles along the side of lifes road that had stupid Pilots. Pilots that let their vehicle smoke. Pilots that paid no attention to nutrition. Pilots that made the vehicle lazy and parked it all the time. Pilots who thought of self only and did not enjoy the wondrous feeling of helping others.

Just a little neglect here and a little neglect there and your vehicle will rust out and you will be a cripple. Start by helping others. That alone will add years to your life because it is the right mental attitude. The rest will follow. Trust me on this. I cannot say it enough. There is no peace of mind or joy like the wondrous feeling of helping others. You mellow inside and have self-esteem, The Right Mental Attitude.

Don Jones