The FSA has published Consultation Paper 10/6: The assessment and redress of payment protection insurance complaints; feedback on CP09/23 and further consultation (CP10/6).
In CP10/6 the FSA provides feedback on the responses to Consultation Paper 09/23: The assessment and redress of payment protection insurance complaints (CP09/23) in which the FSA:
- Consulted on Handbook guidance concerning the fair assessment and, where appropriate, the redress of payment protection insurance (PPI) complaints.
- Consulted on a Handbook rule requiring the re-assessment of all previously rejected PPI complaints made since January 2005.
- Stated that where a firm has identified failings in its PPI sales practices, it would see it as appropriate (from Treating Customers Fairly considerations under Principle 6) for that firm to consider the position of non-complainant consumers who may also have suffered detriment from such failings, including considering ‘whether a wider redress programme is called for’.
At the same time as CP09/23 the FSA published an ‘open letter’ to the industry, detailing common failings in PPI sales practices.
In CP10/6 the FSA states that given the importance of the issues in CP09/23 it is extending its consultation for a further six weeks (until 22 April 2010) on the whole package - that is, proposed Handbook guidance on PPI complaints handling, and its statements on root cause analysis and non-complainants, in light of its open letter and its recast list of common PPI sales failings and its estimates of the costs and wider financial impact.
However, the FSA is not including for further consultation the rejected PPI complaint review rule it had proposed in CP09/23. The FSA will now wait until after its powers have been clarified under the new Financial Services Bill currently before Parliament before deciding how to proceed on this issue.