The FCA is investigating one firm over “serious problems” in the way it dealt with payment protection insurance misselling complaints and says it is considering whether several other firms should face further action.
The regulator has carried out a review into how 18 medium and small firms are handling PPI complaints, covering smaller high street banks, building societies and credit card and personal loan companies.
It found “serious problems” with complaints handling in 12 out of the 18 firms reviewed.
The FCA asked each firm to provide a sample of 50 PPI complaints, made up of 40 rejected complaints and 10 upheld.
Complaint cases were judged on whether complaint handlers were assessing the merits of individual complaints in line with FCA rules and guidance, whether offers of redress were fair, and whether complaint handlers explained their decisions clearly to consumers.
In 12 of the firms reviewed, accounting for 6 per cent of all PPI complaints, the FCA disagreed with six out of 10 rejected cases and had concerns with the redress offers in almost half of the upheld cases.
To date, firms have paid out almost £12bn over missold PPI.
FCA director of supervision Clive Adamson says: “We expect firms to deliver fair outcomes to PPI complainants. In our review, we found some firms are doing this while it is clear others still have some way to go.
“I am encouraged 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.”