The FSA has now said that a number of UK lenders have agreed to identify and compensate borrowers who have been mis-sold payment protection insurance (PPI), as part of a crackdown on poor sales practices in the industry.
It hopes the move will tackle what it calls the "key issue" that too many complaints are rejected by firms and then overturned by the financial ombudsman (FOS).
Companies accounting for more than 40 percent of PPI contracts sold directly to borrowers, alongside unsecured personal loans, have agreed to screen all such sales since July 2007 for evidence of mis-selling, and compensate affected customers, said the FSA.
FSA managing director of retail markets, Jon Pain, said: "This is the last chance for the industry to show that it can act fairly, consistently and in the best interest of consumers on PPI. All firms operating in this sector should take note and where necessary get their house in order."




