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FCA publishes update on PPI work

Mon 01 Sep 2014

FCA publishes update on PPI work – firms have improved complaints handling and are reopening two and a half million old complaints to ensure fair redress is paid.

In another positive move, banks, credit card providers and personal loan companies have agreed to reassess more than two and half million complaints from 2012 and 2013 which they may have either unfairly rejected or paid too little redress to.

Martin Wheatley, chief executive officer, at the FCA, said: “Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where its due, is an important step in rebuilding trust in financial institutions. In around two and a half million complaints this was not necessarily the case so, at our request, firms will be looking at these complaints again.

“The process is now working well; in just over three years £16bn has been put back into the pocket of the consumer – that is unprecedented. Given the enormity of this exercise it is no surprise that there have been some issues along the way but our approach is delivering a good result for consumers.”

The FCA’s update report also gives a snapshot of the PPI redress programme at this moment in time; it shows:

  • Firms have now handled over 13m PPI complaints (since 2007);
  • £16bn has been paid out in redress (since January 2011 – when the FCA began tracking payments);
  • Seven out of ten claims have been upheld in the consumer’s favour;
  • The Financial Ombudsman Service (the Ombudsman) has received over 1m complaints from people unhappy with the response from their provider – equal to about a quarter of all rejected complaints; and
  • 3.2m letters have already been sent to people who are likely to have been mis-sold PPI but have yet to complain, with a further 2m to be sent in the coming months.

The report also sets out key elements of the work the regulator has undertaken with firms, and some of the interventions it has made. This includes seeking written assurance from some firms that their process is fit for purpose and fair, and formal undertakings (known as attestations) from senior managers within firms to ensure any necessary changes to processes are made.

Whatever your view on these findings, the FCA remain closely involved with complaint processes to ensure that firms are arriving at the right outcome when considering PPI complaints. As one of the main providers of PPI complaint expertise in the UK, Hazell Carr is well placed to support your firm with any issues in this area.

Background

Equiniti Hazell Carr has provided specialist regulatory support and complaint handling services since 1997 relating to a wide variety of products and services. Projects have ranged from major case review and remediation exercises encompassing hundreds of consultants outsourced to our sites, through to the provision of one or two experts to a client site for a number of weeks. Whether you require a complete solution, or just certain services, Hazell Carr can provide a bespoke solution tailored to your individual needs.

Equiniti Hazell Carr can provide industry best-practice complaint management to all key phases of the complaints process, including:

  • Data gathering and file building
  • Assessing complaints
  • Calculating redress
  • Issuing final resolution letters
  • Arranging payment
  • Handling post-offer queries
  • Managing the Ombudsman relationship

The solutions we offer range from the provision of a single expert for a few weeks, through to long-term outsourced solutions encompassing hundreds of individuals. Our consultants are experienced and appropriately qualified individuals who offer extensive industry and regulatory expertise.

Next Steps

Equiniti Hazell Carr works with its clients over the long-term to help them achieve higher levels of efficiency and customer satisfaction, and would welcome a discussion with you regarding your complaint handling processes. Please do not hesitate to contact us if you have any queries.