Around one million homeowners who were mis-sold payment protection insurance on their mortgages could claim refunds of £60 million under new measures unveiled by the watchdog.
Hundreds of thousands of people who believe they were mis-sold PPI could get their money back after firms were ordered to reopen previously rejected complaints.
Banks are likely to be forbidden from selling PPI alongside loans and credit cards, with policies where the premium is added to the loan amount expected to be banned altogether.
Six of Britain’s biggest banks have announced they will stop selling controversial payment protection insurance alongside loans. So what future is there for PPI?
The Competition Commission has recommended banning the sale of payment protection insurance alongside loans as part of its high profile investigation into the sector.
The competition watchdog has found that the cost of payment protection insurance alongside retail loans for catalogue items such electronics or furniture is still too expensive.
Alliance and Leicester has been fined a record £7 million by the City
watchdog for putting pressure on loan borrowers to take out payment
protection insurance.
As recession looms, it makes even more sense to take out insurance to cover your mortgage and provide for your family in case disaster strikes. Sam Barrett looks at the options.
The financial watchdog is urging banks to stop selling single premium payment protection insurance alongside personal loans as part of its plans to beef up the regulation of this controversial protection
product.
