13 July 2007
Consumers are set to benefit from an overhaul of the way payment protection insurance (PPI) is sold online, the Financial Services Authority (FSA) has revealed.
An investigation by the FSA recently found that some firms were offering loans on websites where PPI was automatically selected with a pre-ticked box.
This was criticised as it gave consumers little prior warning that they were buying insurance alongside their chosen product.
It is hoped that changes to the way PPI is sold will encourage more transparency and a better deal for consumers.
Vernon Everitt, FSA Director Retail Themes, said: "We have made PPI a top priority and are pleased that firms have agreed to change the way they sell PPI over the internet.
"Naturally, many customers are focused on getting the loan itself, but it is just as important that they also think about whether or not they want to protect their loan repayments by taking out PPI cover.
"This change means that it will be up to the customer to actively choose to buy PPI rather than it being sold automatically."
The latest FSA findings into the PPI market are set to be announced this September.
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