The Financial Conduct Authority (FCA) as part of an update on its Payment Protection Insurance (PPI) compensation work, has reported that firms have improved the way they handle PPI complaints.
Furthermore, banks, credit card providers and personal loan companies have also decided to reopen more than two and half million complaints from 2012 and 2013. These are complaints which they feel may have been rejected unfairly or not have had enough compensation paid to them. Chief Executive Officer of the FCA, Martin Wheatley, said:
“Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where its due, is an important step in rebuilding trust in financial institutions. The process is now working well; in just over three years £16bn has been put back into the pocket of the consumer – that is unprecedented. Given the enormity of this exercise it is no surprise that there have been some issues along the way but our approach is delivering a good result for consumers.”
The update report by the FCA also gives an overview of the PPI redress programme as it currently stands:
- 13 million PPI complaints have been handled by firms since 2007;
- £16bn has been paid out since payments started being tracked in 2011;
- Seven in ten claims have found in favour of the consumer;
- More than 1 million complaints have been received by the Financial Ombudsman Service in relation to discontent with the response from the firm who dealt with their complaint.
The report also outlines work the regulator has done with the firms involved. This has included seeking written assurance from firms attesting to the fairness of their process and also attestations from senior managers to make sure that where changes are required these will be carried out.
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