You are here: Home - Insurance - News -

FCA finds ‘serious problems’ over PPI complaints

Written by:
The regulator has launched action against at least one small firm for failing to handle payment protection insurance (PPI) claims properly, after it found "serious problems" at two thirds of the firms it reviewed.

The Financial Conduct Authority (FCA) said it found “significant issues” with the decisions made and the communication to customers in 16 of the 18 firms it reviewed and was considering whether to launch further actions against “a number of” other firms.

Clive Adamson, director of supervision at the FCA, said: “We expect firms to deliver fair outcomes to PPI complainants. In our review, we found that some firms are doing this while it is clear others still have some way to go.

“I am encouraged that the firms in scope of our review have taken immediate steps to put in place the necessary remedial measures and I expect them to ensure they have robust processes in place to work through the remaining complaints, so that eligible complainants can be paid out as quickly as possible.”

The regulator’s review covered smaller high street banks, building societies, credit card providers and personal loan companies, which together, account for around one million complaints, or about 16% of all PPI complaints.

To date, these firms have paid £1.1bn of the total redress paid out to consumers, which now stands at nearly £12bn, the FCA said.

The FCA also said that the amount of PPI redress paid out in July marks the first time in 2013 that over £500m has been paid out in any one month. The figure stood at £528m, up from £498m in June.

The regulator’s findings among larger firms, including high street banks and credit card companies, will be published at a later date.



Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week