FSA investigates further into loan protection insurance

The British financial watchdog the FSA is looking at ways to tighten its grip on Payment Protection Insurance providers, the FSA have been investigating how the insurance is sold alongside personal loans.

The FSA said that it was “escalating” its regulatory intervention on PPI sales due to what it found in its investigation. They will be putting in measures to protect the consumers and will be considering what regulatory powers are the most appropriate to deliver a fair outcome, this could lead to fining the providers of the insurance product.

The Financial watchdog’s investigations showed that some customers were not told the monthly cost of their PPI when it was sold along with an unsecured personal loan, although at a time of increasing indebtedness and unemployment it is essential for people to protect themselves against losing their income.

The FSA have said that they should have an outcome on the investigation by the first quarter of 2009.

Read the full article in the ukreuters