Put right others' PPI wrongs

For over four years, payment protection insurance providers have been scrutinised, berated and accused of failing consumers when they need their support most. The actions of a few have tarred the reputation of many, making it even harder to convince consumers of the benefits of a product that, in times of hardship, can provide an invaluable financial prop.

It is no surprise to find players in the financial services sector growing weary of this ongoing debacle and turning their backs on PPI. Historically, the same can be said of consumers that lost confidence in providers, fearful of being mis-sold a policy that they will never be able to claim upon.

However, the tide is turning and now is the time to put right the wrong doings of others to repair that tattered reputation. Brokers have a social responsibility to provide consumers in these recession-hit times with the tools to allow them to continue paying their bills should accident, sickness or redundancy occur.

Rising unemployment, long-term sickness and spiralling debt levels are clear indicators of the need for PPI; demand for it is now growing - hence some firms are either refusing to provide unemployment-only cover or are increasing premiums by up to 40%.

Brokers must step in to redress this imbalance: increasing consumer demand creates greater sales opportunities. In 2007, the Council of Mortgage Lenders confirmed that intermediaries had a key role to play in the provision of PPI and Competition Commission research shows that consumers are more likely to trust a firm not linked to credit provision. The Financial Ombudsman Service also points out that the majority of its complaints are from consumers that bought policies from lenders.

Brokers, by reputation, have a clean bill of health and, as well as enhancing the industry's poor reputation, they can safeguard consumers from falling further into debt.

- Sara-Ann Burgess, managing director, Burgesses.