FSA Announce Mis-sold PPI Claims Refunds Could Reach £2.7bn
The Financial Services Authority (FSA) has stated that over the last five years it has found evidence of “weaknesses in PPI sales”, and has given banks and other lenders until December 1st to introduce new rules for handling PPI complaints.
In light of this, Simon Thompson of mis-sold PPI claims specialists Precision Claims noted that “PPI policies have been broadly criticised from being unethical.
"Thankfully, it would seem that measures have finally been taken to improve the credibility of the PPI market, as well as the complaints process taken by banks, after long term campaigning by consumer groups such as the Citizens Advice Bureau and Which?”
With these new rules in place, the FSA predicts that the financial services industry will be forced to deal with around 550,000 complaints per year over the next 5 years, with an average pay out of between £900 and £1800.
The FSA’s Dan Waters said: “(this) is the culmination of months of hard work and now, with these measures, we look forward to consumers being treated fairly whether they are buying or complaining about PPI"
The FSA’s new rules state that if a person would not have bought the PPI policy in the first place, then they must be reimbursed their premium with interest. If the premium purchased was an up-front single payment, but was meant to be a regular policy then they must be returned to a regular premium.
Prior to the introduction of these new rules, banks were refusing to deal with over half the PPI complaints they received, yet after consumers took their cases to the Financial Ombudsman Service (FOS) over 80% were then upheld.
Regarding previously rejected PPI claims, Which? chief executive Peter Vicary-Smith has said that he would like the government to activate the FSA’s new powers as soon as possible, so that money lenders are forced to review rejected PPI claims and wrongly dismissed consumer complaints can be looked at again.
Simon Thompson advises that “If you are concerned that you may have been mis-sold payment protection insurance (PPI) policy, the best thing to do is speak to a PPI claims specialists who is familiar with the guidelines set out by the Financial Services Authority.”
Precision Claims specialise in providing mis-sold PPI claims services for those who have been financially mis treated by banks or lending companies. For more information on making a claim, visit their website: http://www.precisionclaims.co.uk/.
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