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RMIF wants ‘lighter touch’ from FSA

The Retail Motor Industry Federation has urged the Financial Services Authority to ‘adopt a lighter touch’ when it reviews its payment protection insurance (PPI) regulations.

The FSA has said some businesses selling PPI insurance (PPI) are still failing to treat their customers fairly.

Clive Briault , FSA managing director of retail markets, said: "As we have made clear before, when sold properly PPI can provide valuable protection against changes in personal circumstances. But despite some improvements in standards, major weaknesses remain which go to the heart of the culture surrounding PPI sales.

"Customers should come away from the sale having been given the best possible chance of understanding that PPI is optional, what the policy will and will not cover and how much it costs. On the strength of our findings, the industry has further to go to demonstrate that customers really are being treated fairly in this market.”

Matthew Carrington, RMIF chief executive, has raised concerns with the FSA’s concerns over PPI.

“Part of the problem is that the regulations in general are far too complex and burdensome on the retail motor industry. The RMIF has been constantly urging the FSA to adopt a lighter touch. We hope the current effectiveness review being conducted by the FSA will take note of our concerns,” said Carrington.

He said the RMIF would work with the FSA on the issue, and that hopefully the difficulties were limited to specific aspects that could be resolved.

“The FSA is already working very closely with the RMIF on the whole issue of regulation as it applies to the motor trade, and its representatives are currently attending a series of roadshows we are holding for our franchised dealers, which includes the provision for one-to-one meetings with our members."

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