Nationwide withdraws PPI products

Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk, comments: “Today Nationwide BS has announced it will be withdrawing its Personal Loan Protection Insurance and Credit Card Protection Insurance from sale, with its website stating that insurance is available from other insurers and directing customers to look at the FSA’s Moneymadeclear website. It has informed us that this is only a temporary move, and that the sale of PPI will be reinstated in the future.

“This is an unusual move, as PPI is known to be a highly lucrative product. The only other provider not to charge PPI in single premium format is the Post Office, which offers stand alone insurance payable by monthly instalments.

“There must be a very good reason why Nationwide would be prepared to withdraw such a profitable product, is it ducking out of the market before PPI receives too much scrutiny from the regulators, and undoubtedly will be forced to act? Or is there some other reason? Whichever is the case, this move is unexpected and rather baffling. It will be interesting to see the pricing and conditions of the insurance as and when it is relaunched.”