31/08/2011

Exclusive: Credit Firms Pay Back £215M

People with credit cards and loans who had complained about expensive payment protection plans have claimed £215m back from disingenuous firms this year.

In a 4ni.co.uk exclusive, damien Whinnery writes that the Financial Services Authority (FSA) published details on Wednesday of the amount of redress paid by firms during the first six months of 2011 to consumers who have complained about the way they were sold payment protection insurance (PPI).

The data shows that 16 firms, representing 92% of PPI complaints received in the first half of 2011, have paid a total of £215million in redress between January and June 2011 inclusive.

In May and June alone, following the dismissal of the industry's legal challenge to the FSA and the Financial Ombudsman Service, £102m was paid out.

The FSA has also created a step by step video guide featuring its head of consumer affairs, Chris Pond, explaining the process of how to complain to financial services providers, which can be viewed here.

Margaret Cole, interim managing director of the FSA's conduct business unit, said: "The treatment of PPI complainants has left an indelible stain on the financial industry’s record. By releasing these figures we're providing a useful measure of firms’ progress that can be tracked on an ongoing basis.

"We remain 100 per cent committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms’ progress to ensure this is done properly. Where we find that this not to be the case, we are not afraid to take tough action."

(DW/BMcC)

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