The Financial Conduct Authority (FCA) is planning to gather evidence on current trends in complaints on Payment Protection Insurance (PPI).
The FCA will use this 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 this work to commence shortly and 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.
Consumers who believe they were mis-sold PPI should continue to complain to the firm that sold it to them and to the Financial Ombudsman Service if they are not satisfied with the firm’s response. Making such complaints is free to consumers and there is no need to use a claims management company.
Since January 2011, firms have handled over 14m PPI consumer complaints about the sale of PPI, upholding over 70% and paying £17.3bn compensation. The FCA’s intensive work with firms has led them to improve their assessments of PPI complaints.
Notes to editors
- Monthly PPI refunds and compensation statistics (December 2014).
- Redress for payment protection insurance (PPI) mis-sales: Update on progress and looking ahead (August 2014)[1].
- In that document, the FCA announced that banks, credit card providers and personal loan companies have agreed to reassess more than two and half million complaints from 2012 and 2013 which they may have either unfairly rejected or paid too little redress to. The paper also noted the need for continued vigilance for any new issues that arise and to act quickly to fully understand them and where necessary intervene to make sure consumers get a fair deal.
- Additionally, firms are proactively sending over 5m letters to customers they have identified as being at high risk of having suffered a past mis-sale but who have not complained.
- How to claim for mis-sold PPI.
- PPI was sold to borrowers alongside credit products. It was meant to help repay some or all of their borrowing if they lost their income for a period (if, for example, they had an accident, became unemployed or sick, or died). The most commonly sold types of PPI were single premium policies on unsecured loans (around 48% of all PPI policies sold), credit card PPI (around 36%), and regular premium policies on loans or mortgages (around 15%).
- On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.