Some insurance providers have already been “referred to enforcement” or heavily fined by the FSA after they were found to be not up to standard.
The FSA is keen to remind consumers that loans and PPI products do not have to come from the same company. Borrowers are also being advised to familiarise themselves with the type of cover they need before accepting a product.
It is thought that there are between 20 and 25 million PPI products currently held in the UK.
“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,” said FSA managing director Clive Briault.
However, consumer body Which? has said that measures to give consumers more information about PPI will be “too little too late”.