1st December 2010
Adam Phillips, Chair of the Financial Services Consumer Panel, has today issued a challenge to firms to deal with consumer complaints on payment protection insurance (PPI). Revised FSA guidance on complaint handling comes into effect today. Consumers should be entitled to be treated in accordance with the guidance, despite the BBA’s ongoing judicial challenge.
The Panel has commented extensively on PPI mis-selling and complaints and is very concerned by industry pressure which has delayed a resolution and left consumers without compensation.
Adam Phillips, Chair of the Financial Services Consumer Panel said:
"Consumers deserve to have their complaints taken seriously. Firms should not hide behind the judicial review to effectively put complaints on hold. The financial services industry has seriously let down its customers by dragging its feet on PPI and it is time for firms to clean up their act.
The Panel call on those firms who are committed to their customers to state that they comply with the new guidance and will continue to deal with complaints. Consumers with rejected PPI complaints should consider taking them to the Financial Ombudsman Service, where 73% of complaints are currently being upheld1.
Lessons need to be learnt from the PPI debacle by industry and regulators alike. Consumers deserve to be treated fairly by firms who should be providing honest, simple straightforward products which consumers can compare easily and which meet clearly identified needs.”
Notes to editors
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.
There are currently eleven members of the Panel as listed below. (For further information on individual members, see Who is on the panel)