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Rules ‘Will Not Reduce’ Suitable Sales of Payment Protection Insurance

In the latest of revelations in the ongoing battle regarding missold payment protection, the Financial Services Authority has denied the fact that adhering to their new guidelines will not lead to a decrease in legitimate sales of PPI.

The Authority has openly declared that it expects the new guidelines, which are in the process of taking effect, to lead to banks paying out millions in compensation to those customers who were victims of mis-selling. However, it has also denied the banks counter argument that these new guidelines would lead to a downturn in customers – even those whom it would be suitable for – purchasing the cover at all.

Speaking on behalf of the Institute of Financial Planning, the Surrey regional chairman Martin Bamford said that the new regulations would ‘protect customers from the worst of the sales tactics often deployed by the banks and other organizations to sell PPI in a pressured environment.’

The British Bankers Association are currently involved in a judicial review regarding the new regulations, and are currently refusing to deal with any complaints regarding missold payment protection until the review has been completed. However, customers are still able to take their complaints to the Financial Ombudsman Service whilst the banks refuse to deal with them.

For more information on missold payment protection, and to see how you could claim up to £15,000, visit Creditline Financial now by clicking the link here.

Posted by Shaun Edwards on 23 Nov 2010

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