Commitment to help consumers agreed at PPI SummitClaims Management Company regulation must be tightened
24 April 2012
At the Payment Protection Insurance (PPI) Summit on 23 April, representatives from all the major banks and credit card providers, regulators and the Financial Ombudsman Service pledged action to help make PPI claims easier and prove that you don't need to use a Claims Management Company (CMC).
MoneySavingExpert.com and Which? hosted the PPI Summit to increase awareness of how easy it is for consumers to reclaim mis-sold PPI for free and to tackle head on the unscrupulous CMCs who exploit consumers wanting to claim back their money.
£5bn of mis-sold PPI
Which? executive director, Richard Lloyd, said: 'It is a big step forward to have representatives of all the major banks and the regulators around the table and it is encouraging that action has been agreed to help people get back the £5bn of mis-sold payment protection still available.'
He also warned that the government must up its game: 'We will continue to work with everyone present but the government must also now up its game and speed up its plans to tighten up regulation of unscrupulous CMCs who are exploiting consumers who just want to claim back what is rightfully theirs.'
New bank and consumer alliance
MoneySavingExpert.com's Martin Lewis said he was delighted with the progress made but warned: 'Until there's hardcore regulation of this billion pound industry to stop their false claims, and gives redress when things go wrong, even this new bank/consumer alliance will find it tough.'
He added: 'This summit should've been called by government, it wasn't – so Which? and moneysavingexpert.com took it into our own hands.'
PPI pledged action
The aim of the Summit was to get all parties working together to help people get back the money they are owed and help restore trust in the PPI claims process. The following agreements were made to:
- standardise complaints procedures across financial services providers to make the process clearer and simpler for consumers with insight from Which? and MoneySavingExpert.com
- agree to work together to improve communication with customers to explain why you don' need to use a CMC
- and for Moneysavingexpert.com, Which?, the financial services providers and the regulators to write to the Justice Secretary Ken Clarke to call for tougher regulation of CMCs.
CMCs exploiting customers
All parties present also committed to continue to work together to take forward further work in this area. Eric Leenders, executive director of the British Bankers Association said: 'We are committed to work with consumer groups to make sure all customer complaints are fairly heard.'
Chief Executive of the Financial Ombudsman Service, Natalie Ceeney CBE, confirmed that consumers don't need to use a third party to complain about PPI.
She added: 'They will get the same outcome, just as quickly, if they do it themselves and get to keep all of their compensation.'