The next phase of financial services authority investigations
- 20TH JUNE 2007
Although the Financial Services Authority investigation into payment protection insurance (PPI) has been ongoing for two years now, individuals outside of the financial industry have drawn attention to the fact that there had been little progress within the industry by 2006. As a result, the Financial Services Authority changed tack completely in 2007 by announcing that their investigations would include something a little bit different!
The third phase of the investigation was in fact to include mystery-shopping assignments to assess just how far banks and lenders had changed their ways. The main goal of this phase was to check how compliant over 200 providers were in the face of new guidelines and regulations. That actually included reassessment of companies that had already been penalised for being unethical in 2006.
It is hoped that mystery shopping would force providers’ hands as far as compliance was concerned because non-compliance would result in a fine. The Financial Services Authority also announced their intention to educate consumers by establishing a website packed with information about payment protection insurance that would tell an individual everything he or she should know.
One of the major points on the website is the promotion of shopping around for the best possible deal, which did not please banks and lenders because their payment protection insurance had long been the worst value policies on the market. However, independent payment protection providers British Insurance and other similar companies are rejoicing in the fact that they can finally get on with what they do best – helping the consumer to protect their debts just in case!
