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Page last updated at 12:24 GMT, Saturday, 10 October 2009 13:24 UK

Money Box: PPI compensation

Money Box reported that if you have been sold Payment Protection Insurance (PPI) for a personal loan or a mortgage, you might soon receive an offer of compensation from the provider.

Homeowners are to receive £60m in refunds after the Financial Services Authority this week forced insurers to reverse increases in the cost of mortgage protection cover.

Last week, the FSA also ordered firms to review 185,000 complaints from customers about PPI policies. The regulator says too many complaints about PPI are rejected by firms and then overturned by the Financial Ombudsman Service (FOS) in favour of the consumer.

In May this year, the FSA ordered all firms to stop selling single premium Payment Protection Insurance with unsecured personal loans.

Money box reported the details and asked Jon Pain, the Financial Services Authority's Director of Retail Markets what customers can expect.

This item was first broadcast on Radio 4's Money Box on Saturday, 10 October 2009.

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