The Financial Services Authority has told banks and building societies to compensate customers who may have been mis-sold payment protection insurance.
The ruling covers firms that have sold more than 40% of their “single premium” PPI policies at the same time as giving unsecured personal loans. The FSA will also target other companies that have mis-sold PPI when offering secured loans or credit cards.
The regulator has asked firms to reopen 185,000 rejected complaints about PPI.
Payment Protection Insurance is designed to cover debt repayments if you can’t work because of illness or redundancy, and is usually offered whenever you take out a loan, mortgage, credit card or store card, or bought something on credit.
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