In the letter Which? is demanding compensation for consumers who have been misold PPI and also for a robust endowment style FSA and company communication strategy.
Under the proposed strategy companies would have to write to all PPI customers enclosing personalised information on how much they’ve paid as well as detailed information about the issues of concern surrounding PPI.
Which? personal finance campaigns manager Doug Taylor says: “Slapping firms on the wrist with large fines is a start but doesn’t go far enough. The fact that firms are still being fined for PPI failings shows that the problem won’t go away on its own and PPI’s relatively low profile means the number of complaints doesn’t necessarily reflect the number of mis-sold policies.
“The FSA must do more to deter firms from mis-selling in the first place, ensuring that all victims of mis-selling are automatically compensated with a fair and robust system.”
The findings come after the FSA announced it is to increase its intervention into PPI sales.