The City’s watchdog has ordered UK banks and loan providers to reopen 2.5m customer complaints about mis-sold payment protection insurance, reports FTAdviser sister title FastFT.
Emma Dunkley reports that the Financial Conduct Authority’s latest report on PPI says banks, credit card providers and personal loan companies will reassess claims from 2012 and 2013 that have not received sufficient redress or were unfairly rejected.
“Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where it’s due, is an important step in rebuilding trust in financial institutions,” said Martin Wheatley, chief executive.
“In around two and a half million complaints this was not necessarily the case, so, at our request, firms will be looking at these complaints again.”
PPI was sold to borrowers alongside credit products, as a way to help repay the loan if the borrower ran into trouble, although in many cases, the insurance was sold without proper explanation as to what it covered.
Around £16bn has been repaid to consumers in just over three years, which Mr Wheatley describes as “unprecedented.”
Since 2007, firms have dealt with more than 13m PPI complaints, with seven out of 10 instances upheld in the consumer’s favour.
