FSA Trying To Sort PPI Mess
The Financial Services Authority, (FSA) is planning on taking further regulatory action against providers of PPI, as part of its ongoing efforts to protect consumers who take out personal loans.
This all comes after a recent investigation that they carried out, which illustrated that more needs doing.
At current, the FSA is considering a number of different initiatives, such as fining the companies even more, as the previous fines do not seem to have had much of an impact.
It is very much a case of them coming up with an adequate solution to the problem, as everything thus far has illustrated a failing to protect the consumer. One option is to stop firms from selling single premium PPI's alongside unsecured personal loans, as this is the main cause for concern.
The recent probe, whereby the FSA sent people in, 'undercover' to purchase PPI, has illustrated that customers are not being clearly informed as to the implications of the product that they are purchasing.
This all comes as a result of a recent announcement, and is thought to be the last comment that the FSA will make on the matter, until the findings are published, sometime early in 2009.
Due to the current financial climate, PPI is of more relevance than ever before, as more and more people are likely to find themselves out of a job. Therefore, something needs to be done sooner, as opposed to later.
People need to protect themselves against losing their income, as Britain seemingly goes into a recession, but it really does not need to be a case of even more people being mis-sold policies. Surely, now is the time for the industry to get its act together.