The FSA and Office of Fair Trading have teamed up in an attempt to prevent the mis-selling of new products following the Payment Protection Insurance debacle.

The watchdogs are carrying out a joint consultation on guidance they intend to give to firms in relation to creating and selling Payment Protection Products.

Margaret Cole, interim managing director of the FSA’s conduct business unit, said it was a key time to issue the guidance as firms shift away from PPI and develop new products, such as short-term income protection, and new product features, such as debt freeze and debt waiver as elements of a credit agreement or mortgage

Ms Cole said: “The FSA cited new forms of Payment Protection products as an emerging risk earlier this year and we are following up on that warning. This is the first time the FSA has issued guidance on the design of a specific product. Firms must learn the lessons of the past.”

The two organisations will monitor developments in the market and take action where firms’ products or practices risk cause detriment to consumers.

Sally Bowyer, Managing Director of leading claims firm, BrunelFranklin.com said: “We continue to see a huge increase in PPI refund applications as public awareness gradually rises. Cases of mis-selling are still coming to light; as people feel the financial squeeze and learn of the PPI refund successes of friends, family and colleagues, the upward trend in the number of people seeking refunds is likely to continue for the foreseeable future.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.