The FSA is forcing firms to reassess 185,000 previously rejected Payment Protection Insurance (PPI) complaints.
The regulator has today announced a package of new measures to protect consumers in the PPI market and ensure they are better treated when buying PPI or complaining about it.
For complaints about all PPI products, new measures will tackle the key issue that too many complaints are rejected by firms and then overturned by the Financial Ombudsman Service (FOS) in favour of the consumer.
New guidance (due to take effect by the end of the year) will aim to ensure PPI complaints are handled properly, and redressed fairly where appropriate – the FOS has indicated support for the FSA’s proposed approach.
Also, a new rule will require firms to reopen some 185,000 previously rejected PPI complaints and reassess them against the guidance.
In addition, the FSA is launching targeted assessment of sales practices for PPI on secured loans and credit cards if the potential for mis-selling is identified, pro-active reviews by firms may be extended to these areas too.
Jon Pain, FSA managing director of retail markets, said: “Consumers should not be pressured or deceived into buying PPI and they are entitled to have a policy properly explained to them. It is unacceptable that despite previous warnings about poor sales practices