The FSA says product providers have agreed to change the way they sell payment protection insurance over the internet after it took action against them.
The regulator says firms were offering loans where PPI was included automatically, using techniques such as a pre-ticked box. It says this could lead to customers buying PPI without making an active decision to do so.
Firms have agreed to change this so the customer must actively choose to buy PPI.
Director, retail themes, Vernon Everitt says: “It will be up to the customer to actively choose to buy PPI rather than it being sold automatically.”
Paymentcare managing director Shane Craig says: “Resisting the powerful profit-driven force of the big firms is a tough job but the tide is now beginning to turn in favour of the consumer. It is still quite some time before the Competition Commission brings its inquiry to a close so this move will go a long way towards ensuring customers only buy what they want and what they can afford.”
The FSA is due to report on its latest investigations into PPI sales standards in September.