FSA right to launch temporary safeguard on PPI complaints

The Consumer Panel has welcomed the FSA’s move today to give some consumers with payment protection insurance (PPI) complaints more time to go to the Financial Ombudsman. The Consumer Panel has previously criticised the industry for delays in resolving PPI by forcing the FSA to re-publish a consultation on PPI complaints.

Kay Blair, Vice Chairman of the Financial Services Consumer Panel said:

"Consumers affected by the delays need tough action from the FSA and this suspension of the six month limit is a step in the right direction. We are pleased that the FSA has taken the precautionary measure of extending the time these customers will have to go to the Financial Ombudsman.

We have been concerned by the time it is taking to resolve the problems with PPI. Firms have been getting away with not handling customer complaints fairly. The industry has been determined to challenge the FSA’s introduction of new rules and guidance on customer complaints. We certainly hope that a long term solution to PPI complaints can be reached soon.”

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. What we're doing for consumers[1] explains more about the work the Panel is doing.

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

4. There are currently thirteen members of the Panel as listed below (for further information on individual members, see Who is on the panel)[2]