In another win for the consumer the Financial Services Authority (FSA) has ordered some 185,000 previously rejected Payment Protection Insurance (PPI) complaints to be reopened by the firms that sold them. This is good news for you!
So why has the FSA taken this action? In a nutshell they’ve done so because their statistics show that too many consumer complaints about mis-sold PPI are first rejected by lenders only to then be overturned by the Financial Ombudsman Service (FOS).
What are the numbers? The FSA say that on average, lenders reject around 60% of the PPI complaints that they have received. Only 16% of these complaints are then taken to FOS but 80% of these are overturned in the consumer’s favour – in the case of some lenders this figure is even higher. For example, 99% of general insurance complaints (of which the vast majority relate to PPI) made about Egg, Black Horse, MBNA Europe and FirstPlus Financial were upheld in favour of the consumer.
With complaints on the rise as consumer awareness of the PPI scandal increases the FSA are giving the lenders an opportunity to come clean and redress the balance for the consumers.
FSA spokesman, Jon Pain, commented; “The industry must show it can act fairly, consistently and in the best interest of consumers on PPI. All firms operating in this sector should take note and where necessary get their house in order. Where we find problems in PPI sales or complaint handling, firms can expect tough action, including requiring them to undertake reviews and, where appropriate, pay redress.”
It’s reassuring for consumers that the FSA is taking an increasingly hard-line approach to the lenders with the threat of further investigations to come. We pride ourselves on championing the consumer cause and are here to help in what can often be a difficult process. We look forward to hearing from you soon.
