FSA has published an update to its PPI thematic project. Its recent work has uncovered more poor findings so it will step up its regulatory intervention. FSA's latest mystery shopping exercise looked at face-to-face sales of single premium PPI alongside an unsecured loan. FSA found:
- very few customers were told the premium would be added to the loan in a single amount and interest charged on it;
- only half the customers were told about key policy limitations and exclusions; and
- many customers were not told of the monthly and total cost of the PPI.
FSA will now consider the best way to deal with ongoing non-compliant sales and to identify and deal with past breaches. FSA will issue its next update in early 2009. Separately, it will work with FOS on FOS's work on wider implications of PPI.