David Prosser: No backsliding on rip-off loan cover please
Outlook: The FOS has consistently ruled in favour of consumers
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Consumer groups were quick to criticise yesterday's announcement by the Financial Services Authority that it will embark on another six weeks of consultation with the providers of payment protection insurance over its plans for a regulatory crackdown on the policy. And while there is nothing wrong with a watchdog taking some time to ensure it gets things right, it's easy to see why bodies such as Which? are so concerned.
Already, the FSA seems to be backtracking on its previous plan to force PPI providers to re-examine 185,000 rejected complaints made by customers in the context of tougher guidance now in force concerning the sale of such plans. And one also detects hints that the regulator may not force the PPI providers to hand over quite so much compensation in cases where they are at fault.
The FSA has a duty to regulate in a proportionate manner and there are legal limits on its powers (one reason for the delay announced yesterday is that the regulator wants to seek a better understanding of these). But that accepted, it is worth remembering why PPI has become such a cause célèbre: tens of thousands of customers buying the cover have been overcharged for policies they never had any hope of claiming against.
Don't take my word for it. In the year to the end of last March, the most recent period for which figures are available, the Financial Ombudsman Service received 31,000 complaints about PPI. It has consistently ruled in favour of consumers in between 80 and 90 per cent of cases. That is not a record of which the industry can be proud.
So, let the FSA take all the time it needs to make sure its PPI proposals are watertight legally. But the delay must not turn into a U-turn on any of the key recommendations.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments