Ray Boulger, senior technical manager at John Charcol, said selling any product by means of the tick-box method should be banned as customers were not actively choosing to buy products and were being pushed into insurance they did not need or were overcharged for having.
Boulger stated the ban should force firms to allow customers to opt-in rather than opt-out of products, as it was easy for even the most savvy of customers to be caught out.
He said: “At the moment bundled insurance sold as part of another package is not under FSA regulation, but it will be in the future. I think the FSA is likely to consider a complete ban, as it contravenes ‘Treating Customers Fairly’ regulations, because firms know that if they asked customers to tick a box, far fewer would do it.”
Robin Gordon-Walker, spokesman for the FSA, said: “We tackled PPI because it was the most visible area that there was an issue. We got a very good result indeed from the industry and we may look at other areas. Having established where PPI can operate in an unfair way, it can be applied to other areas. We haven’t started anything, but will keep any eye on it with the view to possible action.”
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