FCA Investigation Reveals PPI Complaints Failings

A review into medium-sized firms dealing with mis-sold Payment Protection Insurance (PPI) claims by the Financial Conduct Authority (FCA) has revealed failings in complaints handling by a number of companies.

According to a September report by the FCA, twelve of the sample eighteen medium-sized firms which were investigated by the regulatory body, including smaller high-street banks, building societies and credit card providers were flagged up for their poor complaints handling procedures. The FCA has so far taken enforcement action against one of the lenders, with the other 11 firms facing the possibility of future action.

While six of the firms investigated by the FCA were found to have taken a ‘genuinely holistic approach to PPI complaint handling’ and mainly delivering fair outcomes, the remaining 12 companies from the sample did not. In the case of those 12 companies, the FCA disagreed with more than half of the decisions they made to reject PPI complaints.

The 18 firms in question accounted for around one million PPI complaints, equating to 16% of all PPI complaints and certainly add credence to the accusations that some banks are failing to address PPI complaints appropriately, and ultimately putting unreasonable barriers in the way of customers claiming back their mis-sold PPI.

Richard Lloyd of consumer group Which? has slammed the findings of the FCA, calling for better treatment of consumers who have been misled by their bank or lender:

“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.”

PPI was a product originally designed to help people continue paying off their loans and credit cards should they become unable to make their repayments due to sickness or redundancy, however was widely mis-sold to customers who would never be able to claim resulting in one of the biggest financial scandals of all time.

More than £18 billion has now been set aside by UK banks to compensate customers who were mis-sold PPI, latest figures from the FCA show that in July alone £528 million was paid out to victims of the scandal, representing the largest pay out during a single month since October 2012. 

It is important that in the wake of the findings lenders now take responsibility for their actions and work to help customers reclaim what is rightfully theirs at a time when mistrust between consumers and the banking industry remains prevalent.  

If you believe you were mis-sold PPI and would like to find out how We Fight Any Claim can help then you can call us on 08448569000, or alternatively find out more by visiting our website.