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Thursday, September 27, 2007

New attack on payment insurance

Many firms that sell payment protection insurance (PPI) are still failing to deal with customers fairly, says the Financial Services Authority (FSA).
The regulator's latest survey shows that firms are still not giving customers enough information to judge if they need the insurance.The FSA examined the way 150 firms were selling PPI and carried out "mystery shopping" exercises among some of them.

It will now take more enforcement action and impose bigger fines.

"While some progress has been made by the industry, we are extremely disappointed that some firms have still made little progress in improving their sales practices," said Clive Briault of the FSA.
"They (customers) must be told how this product works, what it covers, and how much it costs. At the moment, too many firms are not meeting these requirements.
Mystery shopping means

"Now these days retailers hire marketing research companies to evaluate the quality of service in their producta; these companies use mystery shoppers to get the information anonymously. They assign a mystery shopper to make a particular purchase in a store or restaurant, for example, and then report on the experience. Typically, the shopper is reimbursed, and can keep the product or service."

"We will now strengthen our action against firms who fail to treat customers fairly when selling PPI," he added.
.... For comeplete artcile visit here


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