PPI firms will not be allowed to take the phoenix route
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The Financial Services Authority has warned that its crackdown on firms that mis-sell payment protec-tion insurance could lead to an increase in phoenix firms.
Speaking at the Mortgage Business Expo last week Lesley Titcomb, director of small firms at the FSA, told delegates that the regulator has its eyes on several firms in this regard.
She says: “Our recent consultation paper on PPI raised the prospect of companies having to reassess past PPI complaints they have rejected, and some believe this means more organisations will try to become phoenix firms to leave these behind.
“I should warn them that we are alive to that threat. We are watching certain companies closely and are determined to stay one step ahead of potential phoenix firms and take strong action against organisations and individuals that try this.”
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