The personal loan borrowers of the UK need not have to fret about the mis-selling done by the lenders and the Banks, as the FSA is gearing up in taking actions against such activities.

London January 23, 2007: Up to ten lenders and banks would be fined for misleading their customers in selling payment protection insurance (PPI). Actually, the lenders and the banks have to give appropriate information, while selling the PPI.

PPI is an insurance cover, which can be taken by the borrower for the risk associated for the payments on personal loans or mortgages. The risk of repayments could be because of ill-health or unemployment.

The FSA (Financial services Authority) may punish those who are guilty in not imparting the right information while selling personal loans or mortgages. Some of the big names may come forward in this case. Action has already been taken on three financial firms, and they have been fined for this wrong doing.  

It is good for personal loan borrowers that they are under the umbrella of the FSA. This regulatory body is doing appreciable work, in the interest of the loan seekers of the UK.