16 May 2011
The Financial Services Consumer Panel welcomes today's decision by the British Bankers Association (BBA) not to pursue further legal action over Payment Protection Insurance (PPI).
The Consumer Panel has previously welcomed the lead shown by Lloyds and has called on banks to take responsibility and settle all outstanding misselling cases without further delay.
Adam Phillips commented:
We are pleased that the banks have finally accepted the judge's decision, but we remain very concerned about the delays and long running legal action. Consumers who have been mis-sold have had to wait far too long for compensation.
We hope that the decision by the banks is a sign of a new approach to their relationship with consumers. The banking industry must act promptly to ensure consumers are compensated as swiftly as possible and business practices are reviewed. We welcome a timetable from the BBA to ensure this does not drag on indefinitely.
Notes to editors
- The Financial Ombudsman Service has received over 200,000 PPI cases from consumers. Over 100,000 of these cases have been received over the last financial year (1 April - 31 March 2011). The Ombudsman Service has found in favour of consumers in 74% of cases. The Ombudsman formally raised its concerns about PPI with the regulator in July 2008.
- The Consumer Panel is a statutory body under the Financial Services and Markets Act 2000 and was initially established by the Financial Services Authority in December 1998. The Panel advises the FSA Board on the interests and concerns of consumers and reports on the FSA's performance in meeting its objectives.
- The emphasis of the Panel's work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA's remit.
- From the 1st April 2011 there are fifteen members of the Panel as listed below. Panel members are appointed to serve a maximum of two terms of three years. Further information[1] on individual members.