PPI
Have you been involved in the sales of Payment Protection Insurance (PPI)?
Has the Financial Services Authority (FSA) contacted you to undertake a thematic review of your PPI sales?
Do you have PPI complaints to deal with?
If you can answer YES to any of these questions then you need the skills of The Consulting Consortium (TCC) to help you.
TCC offer streamlined complaint handling, we can offer you a cost effective service meaning you don’t have to over-stretch your in-house team.
We will cover:
- Process
- Case Review
- Documentation
- Client Contact
Redress calculations can also be taken care of by TCC.
It is clear that the FSA and other market regulators see the PPI market as one of the focuses for enforcement, fines and redress exercises in the coming months and years.
TCC can provide assistance to firms, large and small who are involved in the PPI market. We can also provide a PPI calculator, call the number below to find out more.
For more information on how TCC can help you cope please call us on 020 3008 6020or email info@theconsultingconsortium.com
You cannot delay - the coming years will see an increase in activity in this area by the FSA & FOS - delay will cost you money and reputation - can you afford it?
Issues you need to consider relating to PPI:
Could the customer have been offered a REGULAR premium policy as opposed to a SINGLE premium policy attached to the loan debt?
Was a regular premium policy available at the time from the seller or its supplier?
Would the customer have been allowed to shop around for a better policy and still have retained the ‘deal’ provided on the debt (if preferential terms were in use at that time)?
Would the customer have been allowed to REFUSE any cover (from any source) and still have retained the ‘deal’ provided by the debt?
What if, when reviewing a sale and deciding it was inappropriate, the customer confirms that they still require the protection offered by a PPI policy, but not one attached to the loan? Does this mean that the firm must find a suitable regular premium policy that stands alone and then fund any difference in premium due to time elapsed?
Are you aware that even where a customer should be charged for PPI in any potential redress the premium calculation routine offered by the FOS/FSA only allows for a premium rate of £6 per £100 borrowed; which is below the average cost of similar policies on the open market?
Issues remain where it is clear those incentives for sales; such as broker fees added to premiums prior to affixing to loans; were offered and accepted by brokers. Further work has to be undertaken to see how these should be take into account when recalculating the loan and redress compensation.
Do you have the necessary infrastructure to:
a) Re-open investigations of PPI (as per FSA CP09/23)?
b) Manage the increase in customer contact that such a review may instigate?
c) Deal with regulators, ombudsman and PI insurers in a satisfactory manner that has minimal impact on the continued survival of the firm?
d) Safely calculate suitably accurate compensation to the satisfaction of the regulator, ombudsman and PI Insurers?
e) Manage the whole remediation process end to end within regulatory timeframes?
If you are uncertain about any of the points raised above please call us on 020 3008 6020 or email info@theconsultingconsortium.com and we will be happy to help.
