What constitutes missold?

roonaldo

The FSA (at the time for all you smart !!!!!!) PS10/12 guidelines was specifically about the assessment of PPI complaints.

Key sales failings it refers to are:
pressured sales
polices not being displayed as optional
cost not being disclosed
key limitations of the policy not being disclosed
the suitability of the PPI (in advised sales) not being checked
and much more.

dunstonh

If you check the database of decisions, you'll find plenty of non-advised postal sales which have upheld on the basis of a failure to provide proper information. For example, here's a 1994 postal sale of a credit card:

Usually with postal/internet successes it is due to the lack of information available at the time or a failure in wording. Postal applications where it said "strongly recommend[you have PPI]" tend to succeed as the FOS usually treats those as the consumer interpreting it as advice. And of course, postal applications saying that can rarely meet advice standards.

Pre-regulation is mainly an issue with advisers. Most were not members of an earlier body. Although those that volunteered to the GISC or subscribed to the mortgage code cant use pre-regulation as a reason for refusal. However, PPI is not considered an adviser issue and adviser cases are very low volume and most fail (mainly as MPPI is the main adviser product as advisers rarely got involved with loans and credit cards). The other main area pre-regulation can hit is car dealers and loan brokers. They were usually not members of any earlier body and can use pre-regulation as a reason for not considering the complaint. Banks and credit card providers can rarely use the pre-regulation reason.