FSA Must Clamp Down on Payment Protection Insurance Mis-selling - Cable

7.28.41pm GMT Fri 4th Nov 2005

Responding to the announcement today by the Financial Services Authority (FSA) on Payment Protection Insurance (PPI), that concludes that the sale of PPI poses a high risk to their consumer protection objective, Vince Cable MP, Liberal Democrat Shadow Chancellor said: "The results of the FSA's supervision and mystery shopper exercises merely confirm the fears of many people to have written to me on this issue.

"I am pleased that the FSA have woken up to the fact that PPI is often sold inappropriately, with poor advice, and that the level and structure of inducements and targets for sales staff are a major cause of mis-selling.

"I wrote to the Office of Fair Trading (OFT) in December 2004, and again in September this year to ask them to investigate the lack of competitiveness in the PPI market. In the light of today's findings I will be continuing my calls for the OFT to investigate."