Good news if you’ve had problems with your Payment Protection Insurance (PPI) – there are new measures to help protect you. Shame it doesn’t help people whose complaints were wrongly dismissed.
The Financial Services Authority (FSA) has just announced new guidance for businesses handling PPI complaints. For consumers, this is a step towards a better deal when you find problems with your product or the way it was sold to you.
This can’t come soon enough if your PPI complaint has been badly-handled or you’ve had inadequate redress from firms who should have been doing much better.
Financial Ombudsman stats show just how poorly firms are performing in this area – almost 90% of complaints handled by them are upheld in favour of the consumer. This reflects something inherently wrong further down the chain where the business involved has handled the complaint.
Although this new protocol is welcome, it’s also vital that the FSA is able to force firms to review old cases. There are proposals in the pipeline to do this, but before this can happen, the Financial Secretary to the Treasury must put a commencement order before parliament relating to the Financial Services Act 2010. This will then enable the FSA to order past business reviews.
We’ve called for the commencement order to happen as soon as possible, so those whose complaints were wrongly dismissed get the redress they’re due. Let’s just hope they’re not waiting too long.