Biba has said today that it welcomes any initiative that improves consumer protection on PPI, but it has warned consumers not to believe that this agreement is the solution to the complex issues of buying PPI and the principle of treating customers fairly.

Eric Galbraith, Biba chief executive, said: “Whilst this is a step in the right direction, the FSA's advice on PPI is still relevant and consumers should shop around to obtain the most appropriate and cost effective policy.”