PPI Handlings Criticised By FCA

PPI Handlings Criticised By FCA

After checks were carried out on the handling of PPI complaints, it now appears that there have been countless problems and mistakes during the process of these complaints. It was found that two thirds of all of the companies checked there has been significant issues whilst dealing with payment protection insurance complaints, the scandal that has been ongoing for over a decade and has cost banks billions.

After these ‘spot checks’ one operator has even been sent for an enforcement action and now other operators are being questioned over how they dealt with some complaints. These problems are being regarding as extremely serious and further action should take place. The handling of the compensation claims have been called ‘unfair’ by the FCA or the Financial Conduct Authority and it isn’t the first time that banks have slipped up on the matter. Many banks in the past have been fined thousands and in some cases millions after they rejected an ‘unacceptable’ amount of claims unfairly.

Payment protection insurance was brought in and sold by banks which was supposed to support homeowners that became ill while at work or became unexpectedly unemployed. Most of these people were told that they had to buy the insurance which was not true. Furthermore, some were not even made aware that they were paying for this insurance. When it all came out and people had discovered they were entitled to compensation, major banks up and down the country set a side billions to pay off the compensation and hired hundreds if not thousands to work specifically to deal with daily angry PPI complaints and compensation claims.

The Financial Conduct Authority have argued that around 59 percent of all claims for PPI compensation that were rejected by banks were wrongly rejected. The FCA also expressed worry concerning the redress that was offered in around 43 per cent of PPI cases when the complaints were upheld.

The director of the supervision at the Financial Conduct Authority stated High quality global journalism requires investment. “We expect firms to deliver fair outcomes to PPI complainants. In our review, we found that some are doing this, while it is clear others still have some way to go.”

To add to this, Which? Executive director explained “This is further evidence that some firms are not dealing with PPI complaints properly and are fobbing off customers who have genuine complaints. People deserve to get back what they’re rightly owed, with minimum hassle.

“We want the FCA to name and shame the firms who are not treating their customers fairly and follow up with tough action, including heavy fines, against anyone found breaking the rules.”

Posted by James Fried on Saturday November 02 2013, 3:36 AM EST. All trademarks acknowledged. Filed under Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0