FSA backs PPI ban

Momentum gathered for an outright ban on the sale of single premium PPI policies after a group of the UK’s largest high street banks agreed to stop selling such policies alongside unsecured personal loans from February 2009. The FSA published a statement announcing the decision by Alliance & Leicester, Barclays, The Co-Operative Bank, Lloyds Banking Group (Lloyds TSB, Halifax and Bank of Scotland) and RBS/Natwest, and the regulator added, prior to the Competition Commission’s final report, that it “expects” other firms still selling single premium PPI to “take note of these developments”.