Latest Mis-sold PPI News

March 2010

The FSA has announced a further six weeks consultation on its proposals to reform the Payment Protection Insurance (PPI) industry. The primary cause of this delay appears to stem from criticism and legal objections from the financial services industry, including questioning the right of the FSA to intervene on this controversial issue. The FSA's Dan Waters commented: 'We are disappointed that the industry has responded so critically to our proposals but we remain 100% committed to bringing about genuine, lasting change in the PPI market.'

January 2010

A policy document is due shortly from the FSA. During the period before the release of this document, lenders remain obliged to treat mis-sold PPI complaints fairly, and rejected complaints can continue to be referred to the Financial Ombudsman Service. The FOS found in the customer's favour in over eight out of ten PPI complaints during 2009. Up until now the FSA has imposed fines on twenty three lenders due to their PPI sales practices. Five of the major UK high street banks have already decided to stop offering PPI policies, perhaps in anticipation of a total ban.

December 2009

The Financial Services Authority has stated that from April 2010 all lenders will be obliged to give you written details of any PPI they offer. From October 2010 lenders will further have to wait seven days after you have taken out a loan before they can offer to sell you a PPI policy. This move is backed by The Competitions Commission, and imposes a useful time break for the customer who can either shop around for a more favourable PPI policy, or consider whether in fact the policy is needed at all.

October 2009

The FSA ordered 185,000 previously rejected customer mis-sold PPI claims to be reopened by the lenders that sold them. These complaints will be reassessed against new guidelines to ensure that they are given fair and balanced consideration, as is the FSA is concerned about the administrative burden placed on the FOS. Swinton also received a £770,000 fine from the FSA for PPI mis selling and were ordered to refund a total of £7.8m in premiums to 350,000 customers who had taken out policies.

September 2009

The FSA has begun to order lenders to compensate their PPI customers. To begin with this will only apply to lenders who mis sold the controversial 40% or more single premium PPI policies where the premium is paid up front, in one lump sum, on an unsecured personal loan. The FSA said it is planning to introduce new rules requiring lenders to reassess tens of thousands of rejected PPI complaints dating back to January 2005.

September 2009

"The outcome of a complaint about a PPI sale should not depend on whether or not the complainant persists past the firm on to the FOS. This is the last chance for the industry to show that it can act fairly, consistently and in the best interest of consumers on PPI. All firms operating in this sector should take note and where necessary get their house in order. Where we find questionable practices in sales or complaint handling, firms can expect that we will take action."

Jon Pain - FSA Managing Director of Retail Markets