The revision of ICOB rules now require firms to ensure customers are eligible to claim under the terms of the protection offered, in a bid to combat mis-selling of PPI.
As well as scrutinising customers’ eligibility prior to the product sale, providers were asked to advise purchasers if they were unable to claim under one or more elements of the policy.
British Insurance managing director Simon Burgess says he randomly checked 12 websites and none had implemented the changes.
He says: “Yet again, the majority of PPI providers are flouting FSA rules and as a result, opening the floodgates for more compensation claims, increasing the number of complaints to the Financial Ombudsman Service and further damaging the reputation of the more ethical providers in this sector.
“Their actions have already dented consumer confidence and this latest display of arrogance will only serve to further push potential purchasers away from obtaining cover and leave them without a financial safety net should accident, sickness or unemployment occur. I sincerely hope the FSA clamps down on these online rogues very soon.”