Payment protection insurance has been making the news recently –
but for all the wrong reasons. The whole industry risks guilt by
association thanks to the unsavoury selling practices of an
unscrupulous few. But has the industry done enough to stamp out bad
sales techniques, and enough to comply with regulators’ demands? Or
are the regulators’ demands themselves too stringent?

A few months ago – before the current furore – I was chatting with
an F&I compliance expert at a motor finance house, who
recounted how one day she noticed the repayments for her personal
loan, taken out from a very well-known high street bank, had
suddenly crept up. Upon enquiring, she was told the new charge was
for a PPI policy which she hadn’t asked for and didn’t want, and no
it couldn’t be removed from her loan repayments. “I wonder what the
FSA would have to say about that,” she replied, at which point the
policy was speedily cancelled and a full refund given. How many
less financially-astute debtors would have believed the bank and
carried on paying? And how many, now, will be encouraged by the
media buzz surrounding PPI to reclaim the premiums paid for their
own policies? The issue has potentially serious consequences for
motor retailers who rely on PPI commission to bolster their
margins; Brian Rogerson looks into recent developments, and what
PPI providers are doing to fight back, in our cover story on
p14.

For fleets, the twin issues causing most headaches at the present
time are the environment, and duty of care. Now Arval has found
that many fleets may be neglecting the safety of employees who
drive their own cars on company business – the so-called ‘grey
fleet’ (see p17). Some experts reckon it is only a matter of time
before a high-profile accident involving a grey fleet vehicle
claims a corporate scalp. Duty of care issues are a major reason
behind the rise of telematics, and they can add value by monitoring
fuel usage and shrinking carbon footprints, although John Osborne
finds that telematics is still in some respects a technology
looking for a raison d’être (see p16 for more). 

Best wishes for the month ahead.