People taking out personal loans online are set to save large amounts of cash because payment protection insurance will no longer be sold to them automatically.
That is according to independent payment protection insurance provider Paymentcare.co.uk.
The Financial Services Authority (FSA) announced publicly that major finance firms have agreed to change how they sell payment protection insurance over the internet.
Before payment protection was automatically included, using techniques such as a 'pre-ticked' box in the online deals offered by the personal loans providers.
With this decision taken by the personal loan providers, as a result customers have to actively choose to buy insurance.
Shane Craig, the managing director of Paymentcare said, "this is excellent news for consumers and yet another step in the right direction towards ensuring they receive the fair treatment they expect and deserve,"
"It’s also a very positive move for the image and reputation of the industry and will help to ensure that the people who really want protection will no longer be scared off."
Vernon Everitt, FSA director of retail themes, added: "We have made payment protection insurance a top priority and are pleased that firms have agreed to change the way they sell payment protection insurance over the internet.
"Naturally, many customers are focused on getting the loan itself, but it is just as important that they also think about whether or not they want to protect their loan repayments by taking out payment protection insurance cover.
"This change means that it will be up to the customer to actively choose to buy payment protection insurance rather than it being sold automatically."
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