20 April 2011
The Financial Services Consumer Panel welcomes today's judgment on Payment Protection Insurance (PPI) and urges the banks to accept the result and urgently resolve PPI mis-selling cases.
The Panel is concerned that today's judgment is likely to be only the first instalment of a process of litigation which may take months to resolve.
The Consumer Panel has previously called on banks to admit responsibility and settle any outstanding mis-selling cases without further delay.
Adam Phillips commented:
"We are very pleased with the result of the court case which is a comprehensive endorsement of the FSA's action over PPI. This judgment is a triumph for common sense.
The Financial Ombudsman has now received 200,000 mis-selling complaints and is finding in favour of consumers in nearly three quarters of cases. It is shameful that some in the banking industry are still refusing to admit to the scale of PPI mis-selling and compensate consumers.
It would be very disappointing indeed if today's litigation marked the beginning of a long drawn out legal dispute. It is time for the banks to stop hiding behind expensive lawyers and to finally give consumers the redress they deserve."
Notes to editors
- The Financial Ombudsman Service has received over 200,000 PPI cases from consumers. Over 100,000 of these cases have been received over the last financial year (1 April - 31 March 2011). The Ombudsman Service has found in favour of consumers in 74% of cases. The Ombudsman formally raised its concerns about PPI with the regulator in July 2008.
- The Consumer Panel is a statutory body under the Financial Services and Markets Act 2000 and was initially established by the Financial Services Authority in December 1998. The Panel advises the FSA Board on the interests and concerns of consumers and reports on the FSA's performance in meeting its objectives.
- The emphasis of the Panel's work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA's remit.
- From the 1st April 2011 there are fifteen members of the Panel as listed below. Panel members are appointed to serve a maximum of two terms of three years. Further information on individual members.