Resolving the "ongoing issue" of Payment Protection Insurance (PPI) will be one of three key priorities for the Association of Finance Brokers (AFB) in 2008, it has announced.
The AFB says it will also assess ways of raising standards across the industry for consumers, and support the introduction of new technology to the sector.
It is forming a series of working groups to look at these issues and is calling on members of all sectors of the industry to contribute.
Robert Sinclair, AFB director, says: “We are determined to lead the agenda in the secured loans sector over the next 12 months and work with the industry to find solutions to the common issues we face.
“The task [of the working groups] will be to set out the issues facing the industry and establish a clear way forward.
“Ultimately, we want to bring all sides of industry together to create a more sustainable business platform that serves the interests of consumers.”
Sinclair says the secured loans industry faces a number of key challenges in 2008, including the implementation of the final changes to the Consumer Credit Act 2006, the passing of the European Consumer Credit Directive, and the Competition Commission’s and FSA’s continuing reviews of PPI.
“There will continue to be a focus on consumer debt and how the industry can help address their situation,” he says. “Against the backdrop of the credit crunch and a less robust economy, there is much work to be done.”
The PPI working group will include representatives from insurers, lenders and brokers to investigate the options which have been discussed by the AFB board.
“We want to move the industry towards a robust and sustainable single premium policy offering together with good regular premium contracts,” Sinclair says.
“We must promote a consumer friendly product, which serves consumers' interests first, and also sustains the industry.”
He says the technology working group will cover the customer interview, sourcing, processing, recording and solution of secured loans and linked insurances via IT interfaces.
It will bring together the IT-led providers with the broker-based providers of technology solutions to discuss the issues involved and the possibility of joint ventures.
“The purpose is to ensure that the providers are focused on solutions that meet the needs of the developing secured loans market,” Sinclair says.
“With changes to CCA, ICOB and the CCD it is important that IT developers are aware of the likely future shape of the industry.”
Have your say:
"One of my best clients rang me this week,who was looking to buy a car, the hire purcahse agreement monthly cost was only maginally above the cost of the PPI. The person in question is retired and had sufficient funds to buy outright and yet the salesman still pushed the PPI ie no fact find.Therefore how does the salesman judge if the sale of the PPI is appropriate? My opinion was that if the PPI had been taken up,it would have been a question of who did the compliant letter, themselves or me. This is very worrying, it is about time that some parts of our industy was cleaned up, were is regulation?" Roger Holloway
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