Financial regulator, the Financial Services Authority, (FSA) has announced that it will step up its efforts to come down harder on Payment protection insurance (PPI) policies.

The insurance product, which provides financial assistance in the event of a life altering situation such as losing a job or sustaining an injury that can stop one from working. The insurance product can then be used to pay for loan repayments. However some by PPI providers were provided as “default” along with loans, rather than an optional add-on.

In one instance, Which? reported that a UK couple had paid £23,000 in PPI on a £56,000. The FSA has censored 13 different PPI providers and given out fines of up to £1 million.

Jon Pain, managing director of the FSA's Retail Markets, said: "Tackling poor PPI sales practices remains a high priority for the FSA. We will intervene to ensure consumers are protected and are considering what regulatory powers are the most appropriate to deliver fair outcomes. Firms may wish to consider stopping selling single premium PPI sold alongside unsecured personal loans, given the continuing problems in the sales of this product."