The FSA today announced it is forcing firms that sold PPI to review 185,000 previously rejected complaints and redress any consumers who have been missold under new guidance.
In addition, firms representing more than 40 per cent of face-to-face sales in the single premium unsecured personal loan PPI market have agreed to the review their sales and redress consumers where required.
Head of campaigns Louise Hanson says: “While it’s good to see the FSA make firms review cases they’ve wrongly dismissed, we’re concerned about loopholes. Consumers could still be left paying over the odds or with too little compensation, so the FSA needs to monitor the review process closely.
“The FSA must also take stronger enforcement action against firms with bad complaints handling. It’s not enough to tell them to go back and do better the second time round. Unless big fines are levied, businesses will keep on unfairly dismissing complaints, safe in the knowledge that if they get caught, all they’ll have to do is go back and look at them again.”