Banks and card companies will reopen 2.5 million PPI mis-selling complaint
Banks and card companies will reopen 2.5 million PPI mis-selling complaints amid claims of underpayment and rejection of compensation.
The Financial Conduct Authority (FCA) said that firms would look again at cases in 2012 and 2013 where claimants could have been treated unfairly.
A BBC investigation in June highlighted concerns over PPI compensation.
One expert, commissioned by the BBC, estimated that underpayments could have hit £1bn.
Billions paid out
Payment protection insurance (PPI) was designed to cover repayments, in the event of redundancy or ill-health, but was widely mis-sold.
A huge programme of compensation was set up, with financial firms now having handled more than 13 million complaints since 2007.
The latest figures show that £390m was paid out in compensation in June, taking the total amount of redress in three years to £16bn.
The 2.5 million cases are now being reopened because the FCA noticed a sudden dip in the number of complaints being upheld and leading to compensation.
“Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where its due, is an important step in rebuilding trust in financial institutions,” said Martin Wheatley, chief executive at the FCA.
“Given the enormity of this exercise, it is no surprise that there have been some issues along the way, but our approach is delivering a good result for consumers.”