FSA: Temporary extension for loans providers with PPI complaints

Organisations may have longer to deal with complaints surrounding the insurance issue.

Loans customers who have issued complaints to their banks regarding payment protection insurance (PPI) could find the organisations now have longer to deal with the matter.

The Financial Services Authority (FSA) announced Barclays, Lloyds Banking Group and RBS would be allowed an extension on the subject.

It may affect those with savings accounts who were given PPI without realising and could be entitled to a refund.

The FSA explains current rules state the objections have to be responded to within eight weeks, but the new guidance would see this timeframe extended.

Investments savings customers may be pleased to hear the body's remark's that this move will "ensure that the firms are able to handle the PPI complaints properly".

Directgov notes PPI covers regular payments that are made on borrowing or credit if the individual is unable to work due to an accident, unemployment of sickness.

This can be applied to settlements on mortgages, loans, credit or store cards and catalogue payments, although it might be for a percentage of the sum, rather than the entire amount.

By Mark Hornby