If you have been sold Payment Protection Insurance (PPI) for a personal loan or a mortgage, you may soon receive an offer of compensation from the provider .

Payment Protection Insurance, should pay a sum of money to help with monthly repayments on mortgages, loans, credit/store cards or catalogue
payments if you are unable to work. This could be due to accident, ill health or unemployment.

Homeowners are to receive £60m in refunds after the Financial Services Authority this week forced insurers to reverse increases in the cost of mortgage protection cover.

The FSA said it had intervened after insurers raised mortgage PPI premiums and restricted the circumstances under which customers would be eligible to claim. It is the latest action taken by the regulator.

Last week the FSA also ordered firms to review 185,000 complaints from customers about PPI policies. The regulator says too many complaints about PPI are rejected by firms and then overturned by the Financial Ombudsman Service (FOS) in favour of the consumer. 
 

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