Thursday, 11 January 2007

FSA to clamp down further on PPI mis-selling

The Financial Services Authority today announced a further clampdown on PPI mis-selling with a programme of visits to firms and threats of enforcement action.  The FSA also stated that it would review the current rules in relation to PPI sales and in the event that these were proving inadequate to protect consumers, would look at possible changes.

Clive Briault, FSA Managing Director of Retail Markets at the FSA, said:

"Improving sales standards in the PPI market remains a key priority for us and we see it as an indicator of whether firms are treating their customers fairly. Customers should come away from the sale having been given the best possible chance of understanding that PPI is almost always optional, what the policy will and will not cover, and how much it costs. The next phase of our programme will tell us what progress has been made and what further action is necessary."

The FSA is also examining the case for adding PPI to its suite of web-based tables which enable consumers to compare products. The outcome of this latest phase of work will be published during the third quarter of 2007. Meanwhile, in recognition of the wider structural issues that exist in the PPI market, the FSA will continue to work closely with the competition authorities.

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