FOS receives 900 PPI complaints per working day
by Gill Montia
Story link: FOS receives 900 PPI complaints per working day
The first three months of the 2011/12 financial year became the busiest-ever quarter for the Financial Ombudsman Service (FOS), which received over 81,000 complaints, more than double the number received in the same period of 2010. Complaints about Payment Protection Insurance (PPI) created the surge, with over 900 cases coming in per working day. However, [...]
Banks receive extensions to PPI complaints deadline
by Gill Montia
Story link: Banks receive extensions to PPI complaints deadline
The Financial Services Authority (FSA) has given three banks a temporary extension to the current deadline for dealing with Payment Protection Insurance (PPI) complaints. Normally, complaints have to receive a response within eight weeks but in the case of Barclays, Lloyds Banking Group and RBS, the regulator has recognised the scale of the backlogs created [...]
PPI mis-sales to generate thousands of temporary jobs
by Gill Montia
Story link: PPI mis-sales to generate thousands of temporary jobs
The ending of banks’ resistance to reviewing potential payment protection insurance (PPI) mis-sales in line with new rules from the Financial Services Authority (FSA) could lead to a glut of temporary job opportunities in the UK financial sector. According to a report in The Guardian, Lloyds Banking Group, Barclays, HSBC and RBS will together need [...]
BBA backs down on PPI complaints appeal
by Gill Montia
Story link: BBA backs down on PPI complaints appeal
The British Bankers’ Association (BBA) will not be appealing against April’s High Court judgment regarding banks’ handling of Payment Protection Insurance (PPI) complaints. Following a judicial review of the Financial Services Authority (FSA) and Financial Ombudsman Service, the BBA had been given until 10th May to appeal against a ruling in favour of new FSA [...]
Welcome Financial declared in default over PPI
by Gill Montia
Story link: Welcome Financial declared in default over PPI
The Financial Services Compensation Scheme (FSCS) has announced that customers of Welcome Financial Services Limited (WFSL) may be entitled to receive compensation in relation to advice on, or the arranging of, payment protection insurance (PPI) by the firm on or after 14th January 2005. The doorstep lender, which is part of the Cattles group, has [...]
PPI dominates as FOS reports 15% rise in new cases
by Gill Montia
Story link: PPI dominates as FOS reports 15% rise in new cases
The Financial Ombudsman Service (FOS) recorded a 15% increase in new complaints in the second half of 2010, compared with the previous six-month period. Complaints involving payment protection insurance (PPI) accounted for over half of the new workload, with 24,955 such cases lodged in the final quarter of 2010 alone. The Service received a total [...]
FOS prepares for caseload surge
by Gill Montia
Story link: FOS prepares for caseload surge
The Financial Ombudsman Service (FOS) is preparing for another rise in its caseload, having estimated a 7% increase for the year to March 2011. In the current financial year, Payment Protection Insurance (PPI) disputes have risen 40%, while the number of cases involving motor and general insurance is broadly similar to previous years, and the [...]
Consumer demand for payment protection
by Richard Kilner
Story link: Consumer demand for payment protection
Almost 30% of loan customers who have cancelled or are considering cancelling their payment protection insurance (PPI) would consider a replacement policy. The finding by Capita Insurance Services is perhaps surprising, given the negative press PPI has received in recent years. Capita Insurance Services insurance solutions manager Brian Lindley has stated that historically many consumers [...]
PPI point-of-sale ban to go ahead
by Gill Montia
Story link: PPI point-of-sale ban to go ahead
The Competition Commission (CC) has confirmed that it will introduce a ban on the sale of payment protection insurance (PPI) alongside an associated credit product, such as a personal loan. The restriction, which excludes retail PPI, should have been introduced last year but an appeal by Barclays resulted in a postponement. The Commission has since [...]
Banks delay PPI complaints handling
by Gill Montia
Story link: Banks delay PPI complaints handling
Consumers who have brought legitimate complaints about Payment Protection Insurance (PPI) sold by banks could face delays of many months in receiving compensation. The British Bankers’ Association (BBA) has recently requested a judicial review of some decisions made by the Financial Services Authority (FSA) and the Financial Ombudsman Service, in relation to PPI. The move [...]
Banks demand judicial review of new PPI rules
by Gill Montia
Story link: Banks demand judicial review of new PPI rules
New rules from the Financial Services Authority (FSA) on complaints handling for Payment Protection Insurance (PPI) have prompted the British Bankers’ Association (BBA) to ask for a judicial review of some of the decisions made by the regulator and the Financial Ombudsman Service (FOS). The package of new measures is due to come into force [...]
Broker network director fined over PPI failings
by Gill Montia
Story link: Broker network director fined over PPI failings
The Financial Services Authority (FSA) has fined the director of Essex-based mortgage and insurance broker network, FT Compliance Services Limited (FTCS), £10,500. David Head failed to properly supervise insurance brokers that he knew had close links with a firm and individual previously disciplined by the regulator for Payment Protection Insurance (PPI) failings. Investigations revealed that [...]
Time limit suspended for PPI complainants
by Gill Montia
Story link: Time limit suspended for PPI complainants
Consumers complaining about their payment protection insurance (PPI) have been given breathing space by the Financial Services Authority (FSA). The regulator has introduced a temporary rule that allows those who have recently complained about the purchase of a PPI policy more time in which to refer their complaint to the Financial Ombudsman Service (FOS). The [...]
BIBA appoints Millennium for PPI launch
by Gill Montia
Story link: BIBA appoints Millennium for PPI launch
The British Insurance Brokers’ Association (BIBA) has appointed Millennium Insurance as the exclusive provider of its new members’ scheme for payment protection insurance (PPI). Millennium, which is the distribution arm of Direct Group, will provide a product to be sold on a standalone basis, with or without a mortgage or personal loan. Key features of [...]
Which? backs choice of protection for customers
by Richard Kilner
Story link: Which? backs choice of protection for customers
Following the decision of the Competition Commission to uphold the ban on point of sale Payment Protection Insurance (PPI), Peter Vicary-Smith, chief executive of Which?, has opined that whilst people need protection, PPI was rightly criticised for its cost and poor coverage level. Vicary-Smith went on to state that point of sale PPI effectively put [...]
PPI claims prompt £61m FSCS 2010/11 levy
by Gill Montia
Story link: PPI claims prompt £61m FSCS 2010/11 levy
The Financial Services Compensation Scheme (FSCS) has decided against applying an interim levy on insurance intermediaries in 2009/10, for the costs of payment protection insurance (PPI) claims. However, the body says these costs will be levied in 2010/11, adding that PPI claims are becoming a growing area of its work and will be one of [...]
PPI mis-selling could cost brokers £430m
by Gill Montia
Story link: PPI mis-selling could cost brokers £430m
The Financial Services Authority (FSA) has estimated the cost of compensating customer who have complained of being mis-sold payment protection insurance (PPI) at between £700 million and £1.2 billion. However, the regulator puts the cost of compensating customers who have yet to complain at between £1 billion and £3 billion. The figures are contained in [...]
FSA consults again on PPI reforms
by Gill Montia
Story link: FSA consults again on PPI reforms
The Financial Services Authority (FSA) has published feedback on its plans to reform the Payment Protection Insurance (PPI) market and at the same time announced a further consultation on a revised package of measures aimed at ensure customers are treated consistently and fairly, either when buying new PPI policies or making a complaint about an [...]
Swinton fined £770,000 for PPI mis-selling racket
by Gill Montia
Story link: Swinton fined £770,000 for PPI mis-selling racket
The Financial Services Authority (FSA) has fined Swinton Group £770,000 for serious failings in the sale of single premium payment protection insurance (PPI). The high street broker will also be contacting over 350,000 customers who paid for the cover and offer a full refund. The regulator found that between December 2006 and March 2008 the [...]
Competition Commission to reconsider PPI sales ban
by Gill Montia
Story link: Competition Commission to reconsider PPI sales ban
The Competition Commission has been told to rethink plans to introduce a total ban on the sale of sale of payment protection insurance (PPI) alongside consumer credit agreements. The insurance, which is intended to cover repayments on unsecured loans should the borrower lose their job or become too ill to work, is notorious for being [...]
