Common Point of Sale Failings for PPI Sales

In an open letter sent by Christina Sinclair Head of Department for the Retail Policy and Conduct Risk Division of the FSA, she commented, 'today the FSA has published a consultation paper on new rules and guidance for the proper handling of PPI complaints. In pre-consultation with stakeholders on these proposals and from our on-going supervisory work with firms and other intelligence we have become concerned that one reason many firms are not handling PPI complaints correctly is because they are not applying the appropriate standards for the sale of this product.

This is despite our having repeatedly reminded firms of these standards in numerous speeches, thematic reports and other publications over recent years. In order to remind your members of the appropriate standards, we have set out, in the appendix to this letter, common failings at the point of sale which result in poor outcomes for consumers. These failings have come to our attention, through thematic work, mystery shopping, and enforcement actions. They are not intended to be exhaustive.

As I am sure you will agree, there is no excuse for these failings and we will continue to take robust action – including disciplinary and other formal action as appropriate – when we identify them.'