“FCA’s current approach simply hasn’t worked”, Which? response to PAC report on financial services sector

 Alex Neill, Which? Director of Policy and Campaigns, said:


“The PPI scandal clearly shows that the FCA’s current approach simply hasn’t worked and has meant many people have resorted to using claims management companies. The regulator must ensure this never happens again.

 

“We need a new approach where banks and other providers have to proactively compensate the victims of mis-selling and businesses rather than consumers pick up the CMCs’ costs when they are at fault. This would provide a clear incentive for firms to quickly get compensation back to their customers.’

 

 Background 

  • In April, Which? warned that the introduction of PPI time limit could lead to an increase in nuisance calls from claims management companies trying to cash in on the regulators plans. 

 

  • In 2015 over £3bn was paid out in PPI compensation and the big five banks have now set aside more than £32bn for payments. PPI accounted for 63% of all complaints to the Financial Ombudsmen Service in 2015.

 

  • Which? investigation last year found that 45% of nuisance calls to landlines were about PPI. Populus, on behalf of Which?, surveyed 2086 UK adults online between 10th and 12th April 2015. Data were weighted to be demographically representative of the UK population. Populus is a member of the British Polling Council and abides by its rules.

 

Statement