FSA steps up campaign on PPI products - FT.com
Tuesday, February 24, 2009
Financial regulators have stepped up their efforts to end the sale of single premium payment protection insurance (PPI) products alongside unsecured loans, asking all providers to withdraw the products from sale “as soon as possible”.
PPI is sold alongside loans, including credit cards and personal loans, and is aimed at helping customers to meet monthly repayments in the event of redundancy, illness or accident.
But ongoing concerns about mis-selling of the insurance as a single premium – where the cost is rolled into the loan and interest charged on the total amount – has led to regulatory action.
The Competition Commission last month imposed a ban on the sale of single-premium PPI after October 2010.
But the Financial Services Authority has now asked companies selling single-premium PPI policies to withdraw their products – when sold with unsecured loans – by no later than May 29.
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