Credit life insurance: Time we went digging for SA providers’ dirty secrets
In light of the British scandal, perhaps a Financial Sector Conduct Authority probe is in order
The payment protection insurance (PPI) scandal engulfing UK banks raises the question whether SA’s lenders are not due their own PPI reckoning.
PPI is what we understand as credit life insurance. It is sold to consumers, usually on a mandatory basis, when they take out a loan to cover repayments in the event that they are unable to do so due to death, disability or unemployment.
The cost to British banks of the PPI scandal hit £50bn last week, rivalling the penalties and losses faced by the largest US banks after the global financial crisis, according to the Financial Times. ..