View more on these topics

FCA sets out plans for PPI claims deadline

FCA logo new 620x430.jpg

The FCA plans to set a deadline for consumers to make complaints about missold payment protection insurance.

Once the deadline has passed, consumers will lose their right to have PPI complaints reviewed by firms or referred to the Financial Ombudsman Service.

The FCA says it wants to consult with the industry before setting the deadline, which would fall two years after the rule changes come into force.

The regulator says the rules are not likely to come in before spring 2016, in which case consumers would have until at least spring 2018 to complain.

To date over £20bn has been paid in redress to customers missold PPI.

The FCA has raised concerns about the volume and proportion of PPI complaints being submitted via claims management firms.

It says many complaints relate to pre-2005 and pre-2000 cases where records have gaps and oral evidence is not robust.

The regulator also says the fact that complaints can be made an open-ended basis means consumers who intended to claim have not yet got around to doing so.

The FCA will consult on setting a PPI complaints deadline by the end of the year.

It will also consult on how firms should handle PPI complaints following a Supreme Court judgement in November which ruled that Paragon Personal Finance should have disclosed the large commission it received from selling a single premium PPI policy.

The FCA says: “The consultation paper will include full details of the various proposed rules and guidance, the evidence we have assessed, our reasons for proposing them, and our assessment of their costs and benefits.

“We will continue to monitor firms’ handling of PPI complaints under our current rules.  We expect firms to deal with PPI complaints promptly and fairly. We will take action where firms fail to do so.”

Recommended

Appeal-Court-High-Court-Building--700x450.jpg
12

Banks braced for extra £33bn hit over missold PPI

Banks are braced for a further £33bn hit over missold payment protection insurance ahead of an FCA decision on how to interpret a landmark Supreme Court ruling. The Sunday Times reports banks have been using their latest interim results to warn of the implications of a ruling last year which could prompt further huge payouts […]

Antonio-Horta-Osorio-700x450.jpg

Lloyds’ total PPI bill hits £13.4bn

Lloyds Banking Group has set aside an additional £1.4bn to pay claims for missold payment protection insurance, taking its total PPI provision to £13.4bn. In the bank’s results for the first half of the year, published today, Lloyds says it is continuing to see complaints driven by claims management firms, and is paying out higher […]

FCA logo glass 620x430

FCA hits Lloyds with record £117m fine over PPI complaints

The FCA has fined Lloyds Banking Group a record £117m for failing to properly handle payment protection insurance complaints. The fine, issued against Lloyds Bank and Lloyds subsidiaries Bank of Scotland and Black Horse, is the largest ever retail penalty issued by the regulator. The bank is now reviewing or automatically upholding around 1.2 million […]

FCA interior logo 620x430
5

FCA reconsidering PPI rules after Supreme Court ruling

The FCA is considering whether additional rules are needed on the way firms handle payment protection insurance complaints, following a Supreme Court ruling. In November, the Supreme Court ruled in Plevin v Paragon Personal Finance that failure to disclose a large commission payment on a single premium PPI policy made the relationship between lender and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. If they can agree a long stop policy on PPI why not other areas of Financial advice?

Leave a comment