Which banks will be sending PPI letter?

TeaAndToast_2

Will it only be the big banks that will be sending PPI letters or will all banks be sending them?

How do they determine who has been miss-sold?

magpiecottage

At present this is only a consultation. The FSA has indicated that it expects firms to:

• analyse the ‘root causes’ of PPI complaints it receives
  
• where such analysis suggests recurring or systemic problems in the firm’s sales practices, the firm should consider whether it ought to act with regard to the position of customers who may have suffered detriment from such problems but not complained;
  
• the firm should consider, in particular, whether it is fair and reasonable to pro-actively undertake a redress or remediation exercise, which may include contacting customers who have not complained.

What this means is that where a firm finds repeated failings of the same kind then it should consider whether other customers'cases should be looked at or not.

That may vary by class of business. For example, personal loans which have been had single premium PPI added might need looking at but monthly premium policies might not.

dunstonh

The other interesting point is that with those being sent letters, the 3 year timebar will be allowed to be put in place. The FSA has conceded that historically only 1 in 10 people respond to these type of letters. So, whilst there could be an initial hit for the banks, the 3 year time bar would put an end to complaints after that allowing a line to be drawn in the sand.