The Financial Conduct Authority warns all financial institutions involved with the mis-selling of millions of PPI to ensure their claims systems is in full order and convenient for consumers. The City watchdog’s statement comes after its launching of its £42.2 million advertisement campaign featuring the voice of and animatronic puppet of Arnold Schwarzengger.
Banks and other firms who fail to introduce these positive changes will face hefty fines. According to Megan Butler, FCA’s Supervision Director, the watchdog will closely monitor all activities of banks with pending mis-sold insurance cases and will introduce penalties for those who do not comply with the imposed standards.
Consumer groups had criticised the regulating body for siding with the banks regarding the issue of the claims deadline. According to Which?, the FCA “sided with the banks” and gave them an easy way out for “a problem that they created.”
Bank employees, to increase their work volumes, had sold insurance policies for protecting payments to consumers who did not need or were unqualified for it, including retired individuals, self-employed business persons, and those with existing medical problems since 1990.
The UK’s biggest financial scandal has earned more than £40 billion in refunds for consumers who were wrongly sold the insurance policy.