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Campaigners welcome unsecured loans insurance decision

Campaigners welcome unsecured loans insurance decision

Category: Loans

Updated: 31/10/2008
First Published: 10/10/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Financial Services Authority's decision to fine Alliance & Leicester (A&L) over the sale of payment protection insurance (PPI) has been welcomed by Which?.

Chief executive at the campaign group Peter Vicary-Smith called for anyone who was mis-sold a policy to get their money back, adding that it is "great to see" companies being hit "where it hurts".

PPI is often offered alongside unsecured loans in order to insure against an inability to make repayments.

But A&L was judged to have sold the policies without fully informing customers of their rights and was fined £7 million as a result.

"Anyone who has a personal loan or credit card should check whether they have a PPI policy and, if they think it was mis-sold to them, should consider making a complaint," said Mr Vicary-Smith.

Yesterday A&L responded to the decision by apologising, adding that it would be writing to all customers to explain the situation.

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