View more on these topics

Which? writes letter to FSA calling for PPI reform

Consumer body Which? has written to the FSA calling for an overhaul of the payment protection insurance market after one couple paid over £22,000 in PPI for a £56,000 loan.

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.

Recommended

IFAs facing levy rise over B&B

The FSCS says it is unable to predict if the Bradford & Bingley nationalisation will trigger increased levies on IFAs and the rest of the financial services industry.This week, the Government and the FSCS took on a £14bn loan from the Bank of England to cover the B&B intervention. The authorities hope the sale of […]

Structural damage

Much to the annoyance of my family, I have spent the weekend watching the Ryder Cup. Even as I write this article, I am enjoying the thrills and spills of the singles on Sunday night.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment