Thread: FSA finding on PPI

Originally Posted by bach

FSA publishes latest findings on PPI


Clive Briault

We will now strengthen our action against firms who fail to treat customers fairly when selling PPI.



FSA/PN/102/2007
26 September 2007
The Financial Services Authority (FSA) has today published the findings of its latest review of Payment Protection Insurance (PPI) selling standards. They show improvements in some areas, but also that many firms are still failing to treat their customers fairly.
Clive Briault, FSA Managing Director of Retail Markets, said:
"We have, on a number of occasions, set out clearly our requirements for the selling of PPI. While some progress has been made by the industry, we are extremely disappointed that some firms have still made little progress in improving their sales practices.
"The right PPI can provide valuable protection for consumers, but they are entitled to expect that they will be treated fairly by firms when they buy it. They must be told how this product works, what it covers, and how much it costs. At the moment, too many firms are not meeting these requirements.
"We will now strengthen our action against firms who fail to treat customers fairly when selling PPI."
The FSA's latest review assessed whether firms had made improvements in five key areas. Welcome improvements were found in two of these: the vast majority of firms are now making it clear to customers that PPI is optional; and firms are now offering cancellation refunds on virtually all single premium PPI policies.
However, little or no progress has been made in the other three areas: many firms are still not giving customers clear information about the product and what it will cost; not telling them the extent to which they are eligible for PPI cover and what they are covered for; and not telling them why, where advice is given, the recommended PPI policy meets their demands and needs.
The latest review looked at 150 firms, including mystery shopping of personal loan providers. The mystery shopping identified serious failures in the sales processes of a number of firms selling single-premium PPI alongside unsecured personal loans.
As a result four firms will be subject to further investigation and a further 20 cases may also be investigated.
In addition, the following action has already been taken as a result of the FSA visits:

• Eleven firms have stopped selling PPI either permanently or temporarily until such time as they get their sales processes in order and/or retrain staff;
• Three firms have cancelled their FSA authorisation to sell PPI; and
• Four large firms are reviewing past PPI sales to ensure they were appropriate.

In line with its general approach, the FSA is seeking to increase the level of fines where this is warranted by the nature, seriousness and impact of the breach in question, and by the likely impact on deterrence. Firms have been given due warning of their obligations to treat their customers fairly, both generally and on PPI in particular. Consequently, the FSA will now seek to impose higher fines for firms in the PPI market where standards fall below the required level.
Work will continue with further firm visits and mystery shopping and focussed work on issues that cut across the PPI market. Our rules are also currently under review.
Advice to consumers

Hello Bach,

How the devil are you very well I hope.

I feel like singing a song.

To little, to late

and you can only complain about mis-sold ppi if you took it out after 2004. Same as the fos. They are not interested and the banks no this. So when the big mis-selling went on to thousands of customers, who do they go to. The courts, it costs them money, causes them stress. It makes me so angry

but very good news for lots

Hello Ladies... Hope you are both well, I am just back from holiday and catching up on things.. Still no word from GE as yet..

Have you both seen the link from BF regarding the Complainers program looking for stories ..

As normal too the FSA too little too late.. But as hell says it will help a lot of people who have claims after 2004.. And at least they are still taking the mis selling of PPI seriously along with trying to make these companies Treat their Customers Fairly., I think with the latter they have a job on their hands though, almost as bad a getting a drink out of a Scotsman..lol

"So when the big mis-selling went on to thousands of customers, who do they go to. The courts, it costs them money, causes them stress." And dont they know it, even when they have no evidence to support their defence they still continue with the actions.. Now you have to ask is that following the FSA recommendations to Treat Customers Fairly... I think NOT. It makes you wonder what real Authority the FSA and the OFT etc really have over the big financial institutions.

Ian

Originally Posted by gt568

So does this mean that if the PPI was taken out before 2004 that we cannot claim?

Hello gt,

Sorry if the post confused you.

Of course you can reclaim mis-sold ppi back. The problem is that the fos will no investigate the claim for you if the loan was taken out before 2004.

You option will be to issue a claim via your local county court

I hope that clarifies the situation for you