FSA praises move to protect consumers
Alliance & Leicester, Barclays, The Co-Operative Bank, Lloyds Banking Group (including Lloyds TSB, Halifax, and Bank of Scotland), and RBS/Natwest will stop selling single premium Payment Protection Insurance (PPI) with unsecured personal loans by the end of January 2009.
Some of these firms, along with other market players, now offer or plan to offer regular premium PPI instead of a single premium product.
Jon Pain, FSA’s managing director of retail markets, said: “We are pleased these firms have stopped selling single premium policies and would expect other firms to notice these developments and review their own positions. A PPI product can be helpful for customers wanting protection on a specific credit agreement, as long as the policy is sold appropriately.”
The FSA has cracked down on the mis-selling of PPI and is looking at introducing new regulations.
