The FSA is backing the Which? and MoneySavingExpert.com campaign against claims firms.
The consumer organisations have launched a marketing campaign against unscrupulous claims firms that charge consumers a fee without telling them there is a free alternative.
Speaking to the Chartered Institute of Bankers today, FCA chief executive designate Martin Wheatley threw his weight behind the campaign.
He says: “A significant proportion of these complaints have been driven by claims management companies, and I am sure they annoy you as much as they do me.
“There is no need for consumers to use a claims manager where it is free and easy to complain to a firm directly, so I welcome banks getting together with Which? and Money Saving Expert to make the process clearer and simpler for consumers.”
Wheatley pledged to continue talking with the Ministry of Justice, which regulates claims firms, to tell them about poor practices of claims managers.
He says the best solution is for customers to have confidence that the firms that sold payment protection insurance will take their complaints seriously, treat them fairly and make the process easy for them.
He adds: “Throughout this year we expect firms to write to customers who could be due compensation and explain clearly what their options are. We will then be testing whether banks are providing redress to consumers where they should be.
“This has been a sorry episode for many of us, but it is important that we all continue to deliver what is fair for consumers and learn from the experience.”