9th March 2010
The Consumer Panel blamed industry pressure in forcing the FSA to re-publish a consultation on payment protection insurance (PPI) complaints and redress today, so further delaying fair treatment for consumers in this vital area.
Adam Phillips, Chairman of the Financial Services Consumer Panel said:
"For too long, firms have been letting down their PPI customers by not handling their complaints fairly. It seems that too many firms have regarded PPI as an easy product to sell and make money, without considering whether it really is right for the customer. Now the industry seems determined to fight against the FSA introducing new rules and guidance which would ensure consumers receive a fairer outcome if they make a complaint.
However, this is no reason for the FSA to back off, and we are pleased that the tone of the announcement today indicates the FSA is not planning to do so. Consumers need tough action from the FSA.
We are also concerned that this consultation reveals yet another delay in getting fair treatment for PPI consumers: the FSA will now wait for clarification of its powers under the current Financial Services Bill – which is not guaranteed to be passed in this Parliament – before deciding how to get fair treatment for consumers who have had past PPI complaints rejected.”
Notes to editors
The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.
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. What we're doing for consumers explains more about the work the Panel is doing.
The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.
There are currently thirteen members of the Panel as listed below (for further information on individual members, see Who is on the panel)