Click here to see indices Thursday 29th March 2007: 11:30 By Emily Perryman The Financial Services Authority has reached an agreement with the payment protection insurance industry which aims to stop firms including nil refund terms in contracts with customers.
Nil refund terms are contract terms which prevent consumers from receiving a particle refund if they cancel a single premium PPI policy for reasons including repaying the associated loan early or no longer being able to make claims because of changed circumstances.
The FSA says it has been concerned with the overall fairness and transparency of refund terms in single premium PPI policy contracts, particularly the operation of nil refund terms.
Nick Starling, director of general insurance at the Association of British Insurers (ABI), says the agreement will benefit customers because they will be able to check with the company they bought their PPI through, or direct with their insurer, how much they will get back if they cancel the policy or repay the loan early.
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