Which? criticises PPI fines

Sep 26 2008

Consumer magazine Which? has called on the Financial Services Authority (FSA) to tackle the problems within the payment protection insurance (PPI) market, rather than simply imposing fines on companies found to be failing customers.

PPI, which can be sold alongside a number of financial products including Car Loans, has been a controversial product in recent months, with the FSA fining several companies for failing to treat customers fairly.

However, Doug Taylor, personal finance campaigns manager at Which?, said such action "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," Mr Taylor commented.

Instead, the FSA ought to discourage firms from mis-selling PPI and ensure that consumers are compensated automatically, he stated.

Earlier this month, Lucy Widenka, personal finance campaigner at the organisation, said that consumers ought to seek independent advice about how to protect their finances "as a whole", rather than just a single debt.

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