Fsa Promises Ppi Crackdown
Regulator plans to get tough before publishing report next year
The FSA has promised more direct action against firms' poor PPI sales practices as part of its ongoing crackdown on mis-selling the product.
The regulator is in the process of reviewing the sale of payment protection insurance and plans to publish a report in early 2009 but has claimed it will "escalate its regulatory intervention" in the meantime.
The move follows the results of a 'mystery shopper' sting on providers earlier this year, which it said found "very few" customers were given adequate information about how they would be charged for PPI and what it would cost them in total.
And only half were told a full list of things which could exclude them claiming on the policy.
FSA retail market managing director Jon Pain 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."
This latest bid to prevent PPI misselling follows last month's damning report into the product, as sold with credit cards, by Which?
The consumer protection watchdog's personal finance campaigner Doug Taylor called it a "modern day snake oil" and a "useless product".