FSA writes to firms

The FSA has told lenders to stop selling single-premium payment protection insurance (PPI) with unsecured loans by 29 May.

Jon Pain, the FSA’s managing director of retail markets, has written to firms to remind them that the sale of all single-premium PPI policies is prohibited after 1 October 2010. The ban was set out in the Competition Commission’s PPI report, published last month.

“We believe this request is justified to bring an orderly withdrawal of single-premium PPI,” he said.