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FCA readies for further enforcement action over PPI
by Brian Cantwell on Sep 25, 2013 at 11:36
The Financial Conduct Authority (FCA) is set to bring enforcement action against an unnamed firm over its payment protection insurance (PPI) complaints handling procedures.
The regulator is considering whether to bring further action against a number of other medium-sized firms over their PPI claims handling.
Following a thematic review the FCA said it had found serious problems with complaint handling decisions and communications to customers at two thirds of the firms it investigated.
The regulator said while some firms were handling complaints in line with expectations others still had significant issues ‘that need to be put right’.
The review covered smaller high street banks, building societies, credit card providers and personal loan companies, accounting for around one million complaints, approximately 16% of all PPI complaints.
These firms have paid £1.1 billion of the total redress paid out to consumers, which now stands at nearly £12 billion.
The FCA said it had concerns over 12 firms reviewed which account for 6% of all PPI complaints. The FCA said it disagreed with six out of ten of their rejected cases and had concerns with the redress offered in over two fifths of their uphold decisions.
Clive Adamson (pictured), FCA director of supervision, said: ‘We expect firms to deliver fair outcomes to PPI complainants. In our review, we found that some firms are doing this while it is clear others still have some way to go.
‘I am encouraged that the firms in scope of our review have taken immediate steps to put in place the necessary remedial measures and I expect them to ensure they have robust processes in place to work through the remaining complaints, so that eligible complainants can be paid out as quickly as possible.’
The Financial Services Consumer Panel said it was disappointed at the FCA's findings
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