It has been revealed that the Financial Services Authority (FSA) have not utilised mystery shopping to protect consumer interest since 2010. The authority had promised to increase the tactic after the scandal of missold Payment Protection Insurance (PPI) hit. However, they have not delivered the increase in mystery shopping, a revelation that has shocked consumer groups.

Many consumer groups believe that mystery shoppers are one sure way to discover customer threats of poor products and services. After the missold PPI scandal hit Britain, the FSA said it was to increase efforts to uncover poor consumer protection. However, a Freedom of Information Act submitted by the consumer funded BBC showed that the regulator had not delivered.

Consumer Focus’s director of financial services, Sarah Brooks, said “We accept that mystery shopping may not produce the hard evidence needed for enforcement action. However, it can act like a canary in a mineshaft, an indicator of problems.”

With the PPI scandal still rumbling on as complaints at the Financial Ombudsman Services more than double, there is no doubt consumers have been left in the dark by financial institutions. The FSA responded to concerned consumer groups that mystery shopping would still be used in the correct circumstances to highlight malpractice. However, having not used the process since 2010, consumer groups are worried that FSA are failing to protect customers at a time when the market is filled with protection problems.

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