Financial Services Authority (FSA) has published a new policy statement confirming its package of measures to protect customers in the Payment Protection Insurance (PPI) market.
FSA said that the package will ensure customers are treated more fairly when complaining about PPI and better when buying the product.
The package includes: new handbook guidance to ensure complaints are handled properly, and redressed fairly where appropriate; an explanation of when and why firms should analyze their past complaints to identify if there are serious flaws in sales practices that may have affected complainants and even non-complainants; and an open letter setting out common sales failings to help firms identify bad practice.
According to the FSA, firms must implement the measures by December 1, 2010, and it will monitor the firms closely to ensure the new standards are adhered to.
Dan Waters, director of conduct risk at FSA, said:Today is the culmination of months of hard work and now, with these measures, we look forward to customers being treated fairly whether they are buying or complaining about PPI.
Since we took over the regulation of PPI we’ve carried out 24 investigations and three thematic reviews, issued warnings, halted the selling of single premium PPI with unsecured personal loans, visited over 200 firms, and handed out some very significant fines. Now, with this package of measures we’re confident we can mend a market that has been broken for too long.
This remedy is fair to customers and the industry alike. The onus is now on the industry to ensure it treats all customers fairly. We will be monitoring the implementation of our guidance closely to ensure real change is delivered.