We publish an update on firms’ progress in the handling of payment protection insurance (PPI) complaints.
Why are we issuing this thematic review?
Payment protection insurance (PPI) has developed into the biggest issue of financial mis-selling in recent years and has significantly damaged public trust in financial institutions. Ensuring that firms put things right by handling PPI complaints fairly is vital to resolving the issue and rebuilding public confidence.
A lot of progress has already been made. Firms have now handled over 13m PPI complaints and customers have received over £16bn in redress so far – making it already the largest financial services redress exercise ever undertaken in the UK.
By setting out clearly what has been achieved and what remains to be done, we hope this report will reassure stakeholders that the process for consumers to claim PPI redress is working well, and that the PPI issue is now entering what we believe to be its final stages.
Who is this thematic review aimed at?
This report is for anyone with an interest in PPI (including consumers, consumer organisations, advocates who take forward PPI complaints on behalf of consumers, and firms that sold PPI) and anyone interested in the FCA’s performance and accountability.
What are the next steps?
We will continue our intensive supervision of firms’ PPI complaint handling to ensure they are delivering fair and consistent outcomes. We will also continue to be vigilant for any new issues that arise, acting quickly to fully understand them and – where necessary – intervening to make sure consumers get a fair deal.
We will ensure that firms take fair proactive measures towards groups of customers they have identified as at high risk of mis-sale but who have not complained.
We anticipate publishing another, potentially final, update on the PPI issue in 2015, setting out the further progress that firms have made and what work if any remains still to do.