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The selling of loan insurance has been reviewed at 150 loan companies
The Financial Services Authority (FSA) today announced the results of it's investigation into the selling of loan payment protection insurance at 150 firms across the country.
This latest round of investigation was prompted by the FSA's dissatisfaction into the way in which some firms were processing the sale of payment protection policies. The FSA has imposed several fines in the past for firms not treating customers fairly, including fining GE Capital Bank over £600,000.
The main problem areas were broken down into 5 key areas by the FSA, who said that welcome improvements with firms now making it clear that PPI is optional and most companies allowing refunds on cancelled policies.
However the FSA is still disappointed with progress in other areas such as making it clear how much these policies cost, outlining exactly the nature of cover provided and indicating whether applicants are actually eligible for the cover.
The FSA said it will continue to investigate 4 specific companies and has yet to decided whether to look more closely at a further 20 firms.
All this is good news for the loan companies that have already been operating within the FSA guidelines and of course for customers, who can look forward to fair treatment when they apply for a loan.
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