Credit card holders 'to be protected from the PPI market'
New measures have been announced to protect credit card and personal loan holders from the Payment Protection Insurance (PPI) market.
Credit card holders 'to be protected from the PPI market'
The Financial Services Authority has revealed a series of initiatives to ensure credit and personal loan customers are better treated when buying PPI products.
The move follows an agreement the association obtained from the loan sector earlier this year to stop selling single premium PPI on unsecured loans.
Under the new measures, guidelines will be issued to ensure PPI complaints are handled correctly.
A total of 185,000 previously dismissed PPI complaints will also be reconsidered against the new guidelines, the FSA reports.
FSA managing director of retail markets Jon Pain commented: "Consumers should not be pressured or deceived into buying PPI and they are entitled to have a policy properly explained to them.
"It is unacceptable that despite previous warnings about poor sales practices, backed by 22 enforcement cases and significant fines, the PPI sector still needs the FSA to intervene on this."
Head of campaigns at Which? Louise Hanson commented to the Daily Telegraph on the FSA's decision to reopen cases: "The FSA must take stronger enforcement action against firms with bad complaints handling.
It's not enough to tell them to go back and do better the second time round."
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