Select Committee on Treasury Written Evidence


Supplementary memorandum submitted by ABI

  I am writing following the FSA's oral evidence session to the Treasury Select Committee, held on 24 October, during which the issue of Payment Protection Insurance refunds was raised.

  As you know, the ABI agreed with our members earlier this year that all customers should receive appropriate refunds whenever they cancel their PPI policy, whatever the reason.

  We have recently double-checked with our member companies and they all confirm that they support and will implement this policy. Many have already done so.

  This insurance is, in large part, distributed by lenders, and premium is normally funded as part of the loan. Some lenders need to undertake significant systems or procedural changes to implement this change, for example to avoid penalty charges or the loss of other benefits attached to the loan. Some of these changes are required by the Consumer Credit Act. Product literature and website information also has to be revised to ensure clarity for customers.

  I fully understand the Committee's concern about this issue and can assure you that member companies are proceeding as quickly as possible.

November 2006





 
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