Claims company urges caution on new PPI products

The group said a record number of claims for mis-sold PPI continued to be received claiming that institutions had not learnt their lesson.

Jim Rowley, managing director at Mitchell Farrar, said: “It was the big high street banks in the UK were the main sellers of PPI policies, to people who took out mortgages, credit cards or other loans. They simply can’t be allowed to ride roughshod over consumers once again.

"We always expected that banks would start to devise new products like short-term income protection or even debt waiver elements as part of a wider agreement or even a mortgage.

“The Financial Services Authority and Office of Fair Trading are stepping in quickly to stamp out harmful new versions of PPI policies which is right and I hope consumers aren’t duped once again.

“I would urge anyone signing an agreement with a bank to study the small print in fine detail and ask all the questions they need to before signing on the dotted line.”