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Banks drag their feet on protection insurance

Bankers slammed over PPI attitude

FSA logo

The Financial Services Authority (FSA) will contest the British Bankers’ Association’s (BBA) judicial review of the payment protection insurance (PPI) complaints handling measures. 

Which? chief executive Peter Vicary-Smith has criticised BBA for its support of a product that has been consistently mis-sold over the years. The Financial Ombudsman Services (FOS) has recorded thousands of complaints relating to PPI. It is a major campaigning area for Which?.

The PPI problem

Banks will be expected to continue handling complaints while the complaints process is in progress. If customers don’t think their complaint has been handled properly, they can refer it to the FOS.

There have been more than a million PPI complaints over the last five years. In 2009/2010, the FOS received 49,196 complaints. Nine in ten were found to be in favour of those making the complaint.

The FSA believes that the package of new complaint handling measures outlined in its policy statement is a ‘sensible and fair solution for consumers and the industry alike’. 

Which? acts on PPI

Peter Vicary-Smith said: ‘It makes you wonder what planet the banks are living on. Not content with the billions they have made from this overpriced, flawed and frequently mis-sold product, the banks now seem to be trying to wriggle out of implementing changes that would ensure consumers are treated fairly. The BBA’s taxpayer-backed members should take a long, hard look at themselves and ask why they continue to wage this ridiculous war on consumers.

For more on PPI, see the Which? campaign guide.

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