The Financial Services Authority (FSA) is launching a crackdown on the payment protection insurance industry.
FSA officials have expressed concern that some consumers may not be getting the best deal and the group intends to investigate.
Mystery shoppers will put firms to the test, with those who fail being reprimanded.
“Improving sales standards in the payment protection insurance 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.
“Customers should come away from the sale having been given the best possible chance of understanding that payment protection insurance is almost always optional, what the policy will and will not cover, and how much it costs.”
Around 200 firms will come under scrutiny as part of the crackdown, with a number of companies having already been put under the microscope.
In total, ten of those have been “referred to enforcement” and some have been hit with heavy fines.
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