It is now five years since the Financial Services Authority (FSA) first uncovered issues surrounding the way payment protection insurance was being sold. The revelations, and subsequent fines, shocked many customers and led to a significant rise in the number submitting formal complaints. In 2011, PPI once more made the headlines after a dramatic Judicial Review and a sizable back down by the banks. We take a look at the key events of 2011.
December 2010 The British Banking Association (BBA) requests a High Court Review of new FSA guidelines regarding PPI.
January 2011 The year starts badly for many customers who have submitted complaints as they learn some of the Country’s largest banks will not investigate complaints or pay PPI compensation until the Judicial Review is settled. The decision contravenes other FSA rules that allow lenders only 8 weeks to investigate complaints.
March 2011 Thousands of customers who have had their complaints placed on hold decide to take their complaints to the Financial Ombudsman Service (FOS). By March the FOS is receiving up to 5,000 complaints a week.
April 2011 The High Court completes its review finding in favour of the FSA. The BBA announces it will not appeal the decision.
June 2011 The Lloyds Group, RBS, Barclays and HSBC are faced with significant backlogs of complaints following the completion of the review. The FSA takes the decision to allow these lenders up to 16 weeks to investigate complaints affected by the review. The decision is taken to ensure all complaints are investigated fully and customers receive PPI compensation where necessary.
October 2011 The FSA announces that £1 billion has been paid out in PPI compensation in the first ten months of the year.
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