FSA report: 'The sale of payment protection insurance - results of thematic work'.
In November 2005 the FSA published a report, In this work, we came across terms in payment protection insurance (PPI) contracts that prevented consumers from receiving any refund if they repay their loan early outside the statutory cancellation period ('nil refund' terms). This is part of a larger area of PPI related work including: a further review of sales practices of PPI which we will report on later in the year; undertaking a review of our GI disclosure documentation; and working closely with the OFT on their market study into PPI. We published our review on Critical Illness in May this year.
What we are doing
As a result of the report's findings, we wrote to a sample of firms and examined a number of 'nil refund' terms in single premium PPI contracts. We asked firms to justify using such
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