Watchdog updates consumers on PPI

01/10/2008

The financial regulator released the results of its latest Payment Protection Insurance (PPI) review yesterday.

According to the Financial Services Authority (FSA), it will be "escalating" its regulatory interventions because many of the policies continue to be mis-sold in the UK.

The watchdog has previously censured PPI providers for selling the insurance as a default option for a loan - rather than an added extra.

PPI has also proved controversial with many consumer groups, who say that it does not provide enough cover or good enough value for money.

The protection is designed to help policyholders make loan repayments if they suffer a sudden life change, such as losing their job.

Jon Pain, managing director of the FSA's Retail Markets, said: "Tackling poor PPI sales practices remains a high priority for the FSA.

"We will intervene to ensure consumers are protected and are considering what regulatory powers are the most appropriate to deliver fair outcomes. Firms may wish to consider stopping selling single premium PPI sold alongside unsecured personal loans, given the continuing problems in the sales of this product."

The FSA is scheduled to publish a further update on its PPI review early next year.

Tags; Debt Management and Banking, Credit Card Lifestyle, Recent Graduate Debt,

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