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MSE News: Lenders forced into PPI mis-selling compensation

This is the discussion thread for the following MSE News Story:

"Hundreds of thousands of mis-selling victims, who may not even realise they've been wronged, could be given redress ..."


  • marshallka
    marshallka Posts: 14,585 Forumite
    edited 10 August 2010 at 3:18PM
    Some more info here about it



    1. The FSA has published a policy statement
    2. The FSA outlined its reforms for the PPI market in consultation papers 09/23 and 10/06.

    3. In February 2009 the FSA halted the selling of single premium PPI sales on unsecured loans by writing to chief executives requesting its removal from the marketplace.

    4. The FSA has taken action against 24 firms for failings in relation to PPI sales with fines totalling nearly £13 million. This includes the FSA’s largest fine in the retail sector on Alliance & Leicester which was fined £7m in October 2008 for serious failings in its telephone PPI sales.

    5. FSA data (received from 18 major sellers of PPI) shows that on average, firms reject almost half of the PPI complaints they receive, but some reject nearly all. Around 30% of rejected complaints go on to the Financial Ombudsman Service, where more than 80% are overturned in the consumer’s favour.

    6. The FSA regulates the financial services industry and has five objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.
  • marshallka
    marshallka Posts: 14,585 Forumite

    More than 21,400 complaints have been lodged over controversial payment protection insurance since April - including nearly 2,000 last week alone, figures have revealed.
    The Financial Ombudsman Service (FOS) said it has now received a total of 114,478 consumer complaints in the past five years over payment protection insurance (PPI).
    Over half of these have been received in the past 16 months, with numbers reaching record levels each week.
    The latest figures come as the Financial Services Authority (FSA) confirmed reforms to protect consumers in what has become one of the UK's biggest mis-selling scandals of recent years.
    The FSA said the measures - which come into force on December 1 - were designed to "mend a market that has been broken for too long".
    Its new rules include a handbook to ensure complaints are handled properly and an open letter setting out common sales failings to help firms identify bad practice.
    The FSA has so far taken action against 24 firms and handed out nearly £13 million in fines for PPI failings.
    PPI covers debt repayments if the holder is ill or loses their job, often sold alongside personal loans, credit cards and mortgages.
    But bad sales practice in the sector and the cost of premiums have seen PPI become the single most complained about product to the FOS.
    It said it received 21,417 complaints since April 1 - up almost 60% on a year earlier - with 1,896 in the past week

    No wonder we are all waiting!!!!!!!!
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