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Originally posted by 5corpio
Ombudsman's response to FSA's PPI announcement and other key facts
Today the FSA announced that it had set a timetable for Barclays, Lloyds and RBS to deal with payment protection insurance complaints (PPI)
Commenting on the FSA's announcement, Natalie Ceeney, chief ombudsman, said:
"The FSA has set down a clear timetable for these businesses to deal with complaints. We trust that the businesses involved will use this time to ensure that they have the necessary resources in place to deal with the PPI complaints they've received fairly and promptly."
Key stats about PPI complaints and the ombudsman:
Since the start of this financial year (1 April 2011) we have received 40,000 new PPI complaints
In total the ombudsman service has received over 240,000 complaints from consumers about Payment Protection Insurance - with over 100,000 cases received in 2010/11
the majority of PPI complaints the ombudsman has received relate to sales made by banks
The ombudsman service has overall found in favour of consumers in three out of four cases resolved - and a far higher proportion in relation to some financial businesses
In May 2011 the BBA confirmed that it would not be appealing the High Court's judgment that endorsed the ombudsman's and the FSA's approach on the way PPI complaints are handled
Historical figures on PPI complaints:
So far this financial year (from 1 April 2011) - 40,340
- 2010/11 - 104,597
- 2009/10 - 49,196
- 2008/09 - 31,066
- 2007/08 - 10,652
(Source - FOS Press Release) Click HERE to read more on this story
FSA grants temporary extension for some PPI complaints
The Financial Services Authority (FSA) today agreed to temporary arrangements for Barclays, Lloyds Banking Group and RBS to handle Payment Protection Insurance (PPI) complaints. The arrangements extend the time periods the firms have to deal with their backlog of stayed PPI complaints and the high volume of new complaints on PPI. These arrangements have been put in place to ensure that the firms are able to handle the PPI complaints properly.
Under FSA rules PPI complaints have to be responded to within eight weeks. The extension agrees a timeframe for the firms to deal with the claims that have been put on hold and also agrees additional time for the firms to deal with PPI complaints received since the end of their involvement in the judicial review:
PPI complaints still with the firm but put on hold during the judicial review will receive a decision by the end of August;
PPI complaints received after the conclusion of judicial review but on or before the 31 August will be responded to within 16 weeks; and
PPI complaints received on or after 1 September and before 31 December 2011 will be responded to within 12 weeks.
Strict conditions have been imposed on the temporary time extensions; the firms with the temporary time extension will have to:
keep PPI complainants and their customers fully informed; and
provide the FSA with regular reports on compliance.
The FSA expects all PPI complaints handling to return to the requisite eight-week standard by 1 January 2012 at
Under FSA rules PPI complaints have to be responded to within eight weeks. The extension agrees a timeframe for the firms to deal with the claims that have been put on hold and also agrees additional time for the firms to deal with PPI complaints received since the end of their involvement in the judicial review:
PPI complaints still with the firm but put on hold during the judicial review will receive a decision by the end of August;
PPI complaints received after the conclusion of judicial review but on or before the 31 August will be responded to within 16 weeks; and
PPI complaints received on or after 1 September and before 31 December 2011 will be responded to within 12 weeks.
Strict conditions have been imposed on the temporary time extensions; the firms with the temporary time extension will have to:
keep PPI complainants and their customers fully informed; and
provide the FSA with regular reports on compliance.
The FSA expects all PPI complaints handling to return to the requisite eight-week standard by 1 January 2012 at
Click HERE to read more on this story