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. The agreement with the industry means that in single premium PPI policies, firms should: Not include nil refund terms in contracts with ne...
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