Are you involved in the sale of Payment Protection Insurance (PPI)?
Has the Financial Services Authority (FSA) contacted you to undertake a thematic review of your PPI sales?
If you can answer YES to either of these questions then you need the skills of The Consulting Consortium (TCC) to help you.
Since starting work on the thematic review of PPI in 2005 the FSA had taken enforcement action against 22 firms (up to September 2009) and had imposed fines of £11.8 million over poor PPI selling practices:
The Financial Ombudsman Service (FOS) has commented in its 2008/2009 report that complaints about PPI from consumers make up 62% of complaints in the insurance category.
Complaints regarding PPI have increased from 833 in the year 2004/2005 to 31,066 in the year 2008/2009. The number of PPI complaints referred to the ombudsman service is expected to continue to rise to 46,000 cases in 2010/11.
Of more concern to firms is that the FOS wrote formally in July 2008 to the FSA under the ‘wider implications’ process inviting the FSA to take wider regulatory action; on the basis that individual consumer complaints were not the most appropriate way in which to deal with what appeared to be a systemic problem.
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.