The Financial Services Authority's (FSA) own Consumer Panel blames the insurance industry for putting pressure on regulator FSA to re-publish a consultation on payment protection insurance complaints and redress today, so further delaying fair treatment for consumers in this vital area.
Adam Phillips argues, “For too long, firms have been letting down their customers by not handling their complaints fairly. It seems that too many firms have regarded payment protection insurance 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 that would ensure consumers receive a fairer outcome if they make a complaint. This is no reason for the FSA to back off, and we are pleased that the tone of the announcement today indicates the FSA is not planning to do so. Consumers need tough action from the FSA. “
The FSA has added a further six-week consultation on its revised package of measures. Consumer groups were very supportive of the proposals but insurers and their trade associations were highly critical.
The FSA’s proposed package of measures is designed to ensure customers are treated consistently and fairly, either when buying new policies or making a complaint about an existing one.
The FSA has halted single premium PPI sales, taken enforcement action against 23 firms, issued two ‘Dear CEO’ letters, undertaken three thematic reviews, conducted numerous mystery shops, and visited over 200 PPI providers. It says that the PPI market is broken and needs to be fixed.
Income protection insurance: News update: 11 March 2010