Interest on PPI premiums will be refunded automatically and the provider will write to 14,000 customers offering to pay full redress where appropriate. It is understood to have made £23m from these policies which were sold between January 2005 and August 2007.
LVBS automatically added PPI to quotations when cust- omers sought unsecured per- sonal loans. Where customers knew PPI was optional and objected to it, the company put pressure on them to take up the cover.
FSA director of enforcement Margaret Cole says: “The firm has stopped all sales of PPI and is proposing a comprehensive programme to contact its customers and pay them compensation where appropriate.”
An LVBS statement says: “The practice of automatically adding PPI to the quotation and not clarifying full costs was rectified by July 2006.”