PPI - You may be entitled to a refund.
Consumers with single premium payment protection policies may be in line for a refund today after the Financial Services Authority announced the terms of a deal with the insurance industry.Insurers are no longer able to impose 'nil refund' clauses on new policies and must remove the clauses from existing policies. The nil refund clause meant that any customer who buys a policy with a single premium up front cannot get a refund if it is cancelled, even if the customer repays the loan early or a change in their circumstances mean they would no longer be able to make a claim.
However the deal is unlikely to silence completely criticism of PPI from watchdogs and consumer bodies. A number of companies have been fined recently for mis-selling the policies, and others are under investigation. Even when mis-selling is not an issue, premiums are often added to the total loan amount (and therefore attract interest) meaning the Total Amount Repaid by the customer can be significantly higher than without the insurance.
If you have a single premium Payment Protection Insurance policy your insurer should be in touch to explain what refund you will be entitled to should you cancel your cover. In the meantime if you do cancel one of these policies, make sure you insist on getting back the money you are entitled to.
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