FCA is consulting on proposed new rules and guidance for payment protection insurance (PPI) complaints. This follows FCA’s statement that it would consult on introducing a deadline for PPI complaints, accompanied by a consumer communications campaign, and on new rules and guidance for handling PPI complaints in light of the Plevin decision (see FReD 9 October). Key elements of the proposals are:

  • a deadline for new PPI complaints two years after the start date of the rule – customers who did not complain by that date would lose the right to have their complaints assessed by the firm or the FOS;
  • to raise consumer awareness of the deadline and provide help to understand the mis-selling issue, the process, and how to check whether a consumer had PPI;
  • a new fee rule that will mean the 18 firms that receive around 90% of PPI complaints will fund the customer communications exercise; and
  • a two-step approach for firms when assessing complaints about PPI where a claim could be made under the unfair relationships provisions of the Consumer Credit Act. But these new rules would not require firms to re-examine past policies or complaints.

Consultation closes on 26 February 2016, and FCA plans to make the rules during 2016 and have them take effect immediately. This consultation is accompanied by a CommunicateResearch (ComRes) report to FCA on its quantitative study into PPI from a consumer perspective, the trends in PPI complaints and exploring consumers’ attitudes towards Plevin. (Source: FCA CP15/39 – PPI Rules and ComRes Report on PPI)