The comments come as the BBC revealed that around ten banks and lenders are set to be fined for mis-selling PPI.
This type of insurance protects peoples’ loan repayments in the event of unemployment and illness but the Financial Services Authority has said that many banks have been selling the insurance to people who cannot claim.
Shane Craig, managing director of Paymentcare, a firm which specialises in PPI, said: “More and more consumers are realising that they can arrange stand alone PPI for their loans and credit cards -just like arranging stand alone travel insurance.
“Paymentcare.co.uk wrote to the Office of Fair Trading in September 2005 suggesting that lenders should not be allowed to cross-sell PPI insurance at the same time as the loan and thereby removing the possibility of any mis-selling allegations.”
The Association of Finance Brokers has also said that companies need to be more open with customers in informing them that PPI is optional.
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