The Consumer Panel blamed industry pressure in forcing the FSA to re-publish
a consultation on payment protection insurance (PPI) complaints and redress
yesterday, so further delaying fair treatment for consumers in this vital
area.
Adam Phillips, Chairman of the Financial Services Consumer Panel said:
"For too long, firms have been letting down their PPI customers by not
handling their complaints fairly. It seems that too many firms have
regarded PPI as an easy product to sell and make money, without considering
whether it really is right for the customer. Now the industry seems
determined to fight against the FSA introducing new rules and guidance which
would ensure consumers receive a fairer outcome if they make a
complaint.
However, this is no reason for the FSA to back off, and we are pleased that
the tone of the announcement indicates the FSA is not planning to do so.
Consumers need tough action from the FSA.
We are also concerned that this consultation reveals yet another delay in
getting fair treatment for PPI consumers: the FSA will now wait for
clarification of its powers under the current Financial Services Bill – which
is not guaranteed to be passed in this Parliament – before deciding how to get
fair treatment for consumers who have had past PPI complaints rejected.”
Source: www.riskcenter.com
