MAS criticised for poor PPI management

Sarah Davidson

October 29, 2012

It comes after MAS scrapped payment protection insurance and short term income protection from inclusion in its product comparison tables earlier this year.

Devine said: “I think this has been poorly managed and communicated. Sadly, the people it affects the most are always the last to know. I also think that STIP products have been caught up, much to their detriment, at a critical stage in their development. There is hardly a mention of STIP on the MAS website currently, just a tiny reference at the end of their PPI section.

“The Competition Commission and OFT need to think again about what PPI and STIP providers should be doing help consumers shop around if the comparison table model they included in their remedies has run aground.

“There is definitely much room for improvement in consumer information about PPI and short term protection insurance products.”

The Competition Commission has a requirement for MAS to publish comparative tables of product information for PPI and STIP and the link to MAS comparison tables is still sent to customers on annual statements and in offer letters for customers wishing to shop around.

A spokeswoman from MAS said: “This summer we refreshed our online offering and moved to a new data provider for our comparison tables.

“The previous comparison tables did include PPI products but in light of regulatory and consumer concern over payment protection products, we’re currently reviewing what’s best for our customers.”

She said MAS includes “substantial content” in the form of features and articles about PPI which the service felt provides “comprehensive guidance and advice about this type of product”.

She added: “And we’re continuing our discussion with the industry about the best way to present this information in the future.”

It comes after Defaqto lost the contract to collect product information on MAS’s behalf at the end of August.

Brian Brown of Defaqto said: “In recent weeks Defaqto has been contacting providers to verify product information as part of our regular market and product comparison work, with the current emphasis being on checking data in preparation for creating our 2013 Star Ratings for Mortgage PPI and STIP products.

“Although the verification files we send out look similar to those that we used to send on behalf of MAS, I can confirm that they are not being sent for them.”

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