The Financial Services Authority (FSA) has told all firms still selling single premium payment protection insurance (PPI) with unsecured personal loans to withdraw such products by 29 May. The move comes after an inquiry by the Competition Commission recommended the sale of single premium PPI be prohibited after 1 October 2010. A number of major banks have already decided to stop selling the product, with some firm's opting to offer regular premium PPI instead. "We believe that PPI can play an important and legitimate role to cover repayments on specific credit agreements for consumers facing job loss, or other issues at this difficult time," wrote Jon Pain, the FSA's managing director of retail markets, in a letter to firm's chief executives. "However, our focus remains on how this product has been, and continues to be, sold and whether consumers have been treated fairly during the sales process."
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The City regulator has set a deadline for firms who continue to sell single premium Payment Protection Insurance (PPI). PPI Claims
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