Dean Smith, director of Bristol-based advisory firm My IFA Friend, said: “More should be done to ensure that these firms treat customers fairly. Legitimate complainants should be entitled to fair recompense, and the fact that some people are paid when not deserving is not fair.
“However, a line needs to be drawn in the sand over PPI complaints. There should be an end date.”
Sue Lewis, chairman of the independent Financial Services Consumer Panel, said providers should do more to act in the interests of consumers.
She said: “We are pleased to see that the FCA is taking enforcement action against at least one firm. However, the review is the tip of the iceberg as it deals with firms responsible for less than one in six complaints. The FCA must also get tough with the big players.”