30th January 2015
The City watchdog is to review whether its clampdown on payment protection insurance (PPI) compensation plan have been a success and possibly look at a time restriction on complaints.
The Financial Conduct Authority (FCA) will gather evidence on current trends in complaints about PPI – which has become the most complained about product in the UK – and plans to use it to assess whether it is doing enough to protect consumers and enhance ‘the integrity of the UK’s financial system’.
Further measures will then be considered, including a consumer communication campaign and possible time limit on complaints, an idea that has been floated before.
There could also be further rule changes or guidance on whether the continuation of the PPI redress scheme in its current form best meets the regulator’s objectives.
Evidence will be gathered in the summer and while the work is ongoing PPI complaints will continue to be dealt with as normal. The FCA said consumers who believe they were mis-sold PPI should complain to the firm hat sold it to them and the Financial Ombudsman Service if they are not satisfied with the firm’s response.
It reiterated that complaints are free to make and consumers do not need to use a claims management company, which take a slice of any compensation paid.
Since January 2011, companies have handled over 14 million PPI complaints and 70% of the complaints have been upheld resulting in £17.3 billion of compensation being paid out.