FSA's latest findings on PPI show consumers still not getting fair treatment on payment protection insurance

26 September

The FSA’s latest research on the sale of Payment Protection Insurance (PPI) shows that, while some progress has been made, a number of firms are still failing to treat their customers fairly when selling this product.

John Howard, Chairman of the Financial Services Consumer Panel said:

""These results are very disappointing. The industry has been warned about problems in the sale of PPI before, following previous FSA investigations in this area. But it would seem that some parts of the industry continue to see PPI as an easy sale with big commissions producing substantial profits which outweigh the regulatory risks.

We welcome the FSA's message in the report today that they will take enforcement action, using mystery shopping results as well as other evidence, and will seek to increase the size of fines. I suspect there are major high street names at fault here and if that is the case I would expect to see them at the top of the FSA’s list.

We also await the findings of the Competition Commission on PPI – due to publish an initial paper later this year – to see if there are fundamental problems with the structure of this market."

 

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.
   

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on this website.
   

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.
   

4. There are currently twelve members of the Panel as listed below.

   John Howard (Chairman)
   Adam Phillips (Vice Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner

   Jenny Hamilton
   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart