Citizens Advice response to PPI High Court Ruling
20 April 2011
Citizens Advice Director of Public Policy Teresa Perchard said:
“Widespread mis-selling of payment protection insurance (PPI) has been causing harm to consumers for many years and was the subject of our super complaint to the Office of Fair Trading back in 2005* which triggered the original investigation. Evidence from our CAB network has consistently shown that too often consumers had been mis-sold PPI policies that were far too expensive and completely unsuitable for their needs, often contributing to debt problems.
“Today’s ruling really is very significant and should mark the beginning of the end of the PPI scandal. The FSA have made it clear that they expect firms to give proper redress to consumers who have been treated unfairly and the court has upheld the regulator's power to do so. The banks have been dragging their feet over dealing properly with PPI complaints for too long and we hope that this will now change.
“People who believe they have been mis-sold a PPI policy should continue to complain to the firm as before. Firms may still tell people that their complaints have been put on hold, pending any appeal. But people who are told this can take their complaint to the Financial Ombudsman.”
*In September 2005 Citizens Advice made a ‘super complaint’ to the Office of Fair Trading, calling on them to launch an investigation into the payment protection insurance (PPI) business, which at that time had an estimated 20 million policies in force and produced annual revenue in excess of £5 billion. Protection racket – CAB evidence on the cost and effectiveness of payment protection insurance, the report on which the super complaint was based, is available on the Citizens Advice website:
Notes to editors:
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