New FSA guidance issued on mis-sold PPI

The FSA has released new guidance for firms to follow when writing to customers who have been sold payment protection insurance (PPI).

New guidance has been issued by the FSA which outlines the process firms should follow when writing to customers who have been sold payment protection insurance (PPI).

The guidelines emphasise that firms need to be clear about why a PPI policy may have been mis-sold, why the customer could be entitled to compensation, how they should make a claim and the timescales involved in doing so.

The FSA are contacting customers who may have been mis-sold a PPI policy but have not yet complained. Since 2001 nearly £34bn worth of policies have been sold and in 2011 the total redress paid by firms was £1.9bn.

From the time a sale is made customers have six years in which to make a claim, or three years from the date they became aware that they had cause to complain. If a complaint is made outside these time limits, the firm no longer has any obligation to consider it and the Financial Ombudsman Service is also entitled to dismiss such a claim.

Martin Wheatley, managing director of the FSA, has stated: “This is important guidance and marks a key moment in the story of PPI. So far the majority of payouts have been for complaints received before, or put on hold during, the judicial review. However, we are now beginning to see firms considering how to treat customers who were mis-sold but have not complained.

“We think that the redress due from this process may well exceed what has been paid so far, and that is why we are acting now to clarify our expectations. By ensuring that firms are clear about the problems they have identified and the potential redress due, we are aiming to prevent people running out of time if they choose to complain.”

Register for Updates

Register to receive news updates straight to your inbox.
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.
  • This field is for validation purposes and should be left unchanged.

Newsletter

Sign up to our newsletter
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.
  • This field is for validation purposes and should be left unchanged.

Technology Form

  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.

Get in touch with us

We're ready to show you the future of consulting. Just fill out the form below!
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.

PPI Case Handler Profile

Complete your details below to receive our PPI Case Handler profile.
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.
  • This field is for validation purposes and should be left unchanged.

Subject Access Request

    We require basic personal details to locate you on our records.

Request to Delete your Personal Data

    We require basic personal details to locate you on our records so we can delete your information.

Request to Withdraw Opt-In

    We require basic personal details to locate you on our records.