Customers to receive greater PPI 'transparency'

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Customers to receive greater PPI 'transparency'

Thu 12th Jul 2007

Customers banking online are set to receive a more transparent service when dealing with their finances online.

Major finance firms have agreed to change the way they sell payment protection insurance (PPI) over the internet.

The Financial Services Authority (FSA) have agreed to change the set-up on online forums in order that the customer has to actively sign up for PPI to purchase it.

A number of firms used techniques such as pre-ticked box so that consumers might inadvertently end up purchasing the insurance package.

Vernon Everitt, director of retail themes at the FSA, 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."

He added: "Naturally, many customers are focussed 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."

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