The FSA is backing the Which? and Moneysaving- expert.com campaign against claim firms that charge consumers a fee without telling them they could claim for free.
The campaign seeks to address confusion after research showed one in four people was unaware that claim firms charged a fee.
Around three-quarters of payment protection insurance claims come from claim firms. The Financial Ombudsman Service believes total complaints will reach 260,000 in 2012/13, with around half relating to PPI. Since January 2011, about £3bn of PPI redress has been paid.
Speaking to the Chartered Institute of Bankers last week about the sheer number of PPI claims, FCA chief executive designate Martin Wheatley said: “A significant proportion of these complaints have been driven by claim companies and I am sure they annoy you as much as they do me. There is no need for consumers to use a claim firm where it is free and easy to complain to a firm directly, so I welcome banks getting together with Which? and Money Saving Expert.”