The move has prompted speculation that the industry is likely to see more enforcement action similar to that experienced by Regency Mortgage Corporation Limited, before the findings are released. Regency was fined £56,000 for failing to meet the demands and needs of its non-conforming clients.
The PPI market has come under a barrage of criticism recently, following the FSA’s unfavourable first thematic study of the sector and a condemning report by the Office of Fair Trading (OFT). Phase two of its work has involved visits to 40 firms selling PPI with revolving credit, unsecured personal loans, and mortgages and secured loans in the non-conforming sector.
Robin Gordon-Walker, spokesperson for the regulator, refused to be drawn on an exact publication date for the findings, but didn’t rule out further enforcement action. He said: “The second phase of the thematic project on PPI is almost there, but we will not announce a publication date. It will be revealed some time in the Autumn, when the work is completely finalised. We cannot rule out further enforcements, but any announcements will be entirely separate from the thematic work.”
Bill Warren, director at Complete Mortgage and Loans Services, said: “It wouldn’t surprise me at all if more enforcement action was to come, as the payment protection market has been the focus of some intense investigation recently. However, I think the delay in the publication is due to the fact that the regulator has had to do a lot more work than it first intended. The OFT report and the whole issue surrounding credit cards means it has had to cast its net wider and deeper to ensure it is doing the most thorough job possible.”
