FCA to gather evidence on how the PPI complaints process is working.07 May 2015
The FCA is currently gathering evidence to assess whether the current approach is continuing to meet its objectives of securing appropriate protection for consumers and enhancing the integrity of the UK’s financial system. The FCA will then consider whether further interventions may be appropriate - which could include a consumer communication campaign; a possible time limit on complaints; or other rule changes or guidance - or whether the continuation of the PPI scheme in its current form best meets its objectives.
The FCA expects to give its view on the evidence collected in the summer. While this work continues, the FCA expects firms to continue to deal with PPI complaints in accordance with our requirements.
Since January 2011, firms have handled over 14 million PPI consumer complaints about the sale of PPI, upholding over 70%. The FCA’s intensive work with firms has led them to improve their assessments of PPI complaints. A total of £424.5 million was paid in January 2015 to customers who complained about the way they were sold PPI. This takes the amount paid out since January 2011 to £18.5 billion.
These figures come from 24 firms that made up 96% of complaints about the sale of PPI last year. During 2011 the FSA covered 16 firms that accounted for 92% of PPI complaints.
Richard Bramham, CEO of MoneySave Solutions, commented: “It is clear that the PPI mis-selling still has some way to go before all consumers affected by this scandal have been made fully aware of their right to reclaim compensation where a product they didn’t want, weren’t aware of or they were ineligible for was sold to them. This applies not just to PPI mis-selling, but also mis-sold mortgages and packaged bank accounts.”