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FSA urged to impose sweeping PPI reforms
Which? is calling on the Financial Services Authority (FSA) to reform the Payment Protection Insurance (PPI) market to ensure customers are treated more fairly.
a letter to the FSA, the consumer watchdog demanded the regulator overhaul the PPI market.
It is asking the FSA to ensure customers who fall victim to mis-selling are adequately compensated while the firms found guilty of mis-selling should be proactively reviewed.
It says companies responsible for selling PPI should also write to all customers with a PPI policy enclosing personalised information on how much they have paid into it.
Finally, it is calling for the FSA to produce factsheets which point out the issues of concern in the PPI market as well as an explanation of what would be an appropriate sale, what would not and what to do next if you think you were mis-sold.
Which? personal finance campaigns manager Doug Taylor said giving firms large fines does not 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."
Which? is calling on the Financial Services Authority (FSA) to reform the Payment Protection Insurance (PPI) market to ensure customers are treated more fairly.
a letter to the FSA, the consumer watchdog demanded the regulator overhaul the PPI market.
It is asking the FSA to ensure customers who fall victim to mis-selling are adequately compensated while the firms found guilty of mis-selling should be proactively reviewed.
It says companies responsible for selling PPI should also write to all customers with a PPI policy enclosing personalised information on how much they have paid into it.
Finally, it is calling for the FSA to produce factsheets which point out the issues of concern in the PPI market as well as an explanation of what would be an appropriate sale, what would not and what to do next if you think you were mis-sold.
Which? personal finance campaigns manager Doug Taylor said giving firms large fines does not 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."
