John Howard added:

"We have always been of the view that the FSA cannot rely on returns from firms and occasional inspection visits to regulate successfully. Mystery shopping enables the FSA to see exactly what customers are experiencing and so far it has not been a pretty sight. Along with results into the selling of equity release, payment protection insurance and self certification mortgages, this latest work shows that the consumer experience is falling woefully below what it should. Surely by now senior executives understand that firms must comply with FSA rules, but this doesn’t seem to be getting through to their staff in the high street.

We are now keen to see that the FSA follows up the weaknesses exposed in all these areas and does more than just write to the Chief Executives of the regulated firms. We would like to see rigorous and robust action from the FSA in finding out why these new rules are not being complied with, and then dealing with firms by enforcement action if they are shown to have systemic problems in the way they are selling to consumers. We have asked the FSA to update the Consumer Panel regularly on this work and we will be monitoring progress closely."

– ends –

MEDIA ENQUIRIES