Payment protection crackdown in UK
Britain’s Financial Services Authority (FSA) has banned insurers from selling single-premium payment protection insurance (PPI) with unsecured loans.
The cost of single-premium PPI is rolled into loans and interest charged on the total amount.
In January, the UK’s Competition Commission imposed a ban on the sale of single-premium PPI after October 2010.
But last week the FSA set a May 29 deadline for the withdrawal of the product from sale with unsecured loans.
The single-premium PPI policies sold with unsecured loans have become notorious for their high cost and significant exemptions.
The cost of single-premium PPI is rolled into loans and interest charged on the total amount.
In January, the UK’s Competition Commission imposed a ban on the sale of single-premium PPI after October 2010.
But last week the FSA set a May 29 deadline for the withdrawal of the product from sale with unsecured loans.
The single-premium PPI policies sold with unsecured loans have become notorious for their high cost and significant exemptions.