Commenting, Louise Hanson, head of campaigns at Which?, said: "While it's good to see the FSA make firms review cases they've wrongly dismissed, we're concerned about loopholes. Consumers could still be left paying over the odds or with too little compensation, so the FSA needs to monitor the review process closely.
"The FSA must also take stronger enforcement action against firms with bad complaints handling. It's not enough to tell them to go back and do better the second time round. Unless big fines are levied, businesses will keep on unfairly dismissing complaints, safe in the knowledge that if they get caught, all they'll have to do is go back and look at them again.
"PPI isn't the only area where FSA action is needed - the Ombudsman's complaint statistics show too many firms selling a range of different products, which have had a higher-than-average number of complaints upheld against them. The FSA must take swift action to get these firms to review their cases, to improve the industry's attitude to complaints handling."
