A leading broker has spoken out against the misselling of payment protection insurance (PPI).

Stephen Clowes, Millennium Insurance managing director, said that: “Commoditisation…and poor sales practices are damaging to consumers”.

He added: “There is a false perception that PPI doesn't payout. Valid claims involving bad backs, mental illness, stress or nervous disorders are paid provided they are supported with the correct expert or medical advice.”

Clowes also called for an end to non-advised PPI sales.

He said: “Customers need, and deserve, straightforward, quality PP insurance that pays up when called on to perform. In our opinion companies should stop selling the cheapest premiums and start providing the client with the right kind of policy for them.”

Consumer group Which? has called on the FSA to take action against insurers who run misleading advertising campaigns.