The FSA has launched the third phase of its drive to improve standards of selling payment protection insurance (PPI).
The next phase will incorporate mystery shopping and follow-up visits as well as visits to new firms.
Clive Briault, FSA managing director of retail markets, said: "Improving sales standards in the PPI market remains a key priority for us and we see it as an indicator of whether firms are treating their customers fairly.
"Customers should come away from the sale having been given the best possible chance of understanding that PPI is almost always optional, what the policy will and will not cover, and how much it costs. The next phase of our programme will tell us what progress has been made and what further action is necessary."
The programme has five elements, due for completion by the end of June 2007. Customers should:
• be told that PPI is optional, where this is the case
• receive clear information about the product and what it will cost
• be given the assistance they need to be clear about what they are eligible for under the policy and what the exclusions are
• where advice is given, be recommended a policy that meets their needs
• be offered a fair refund if they cancel their policy.
