Desmond Hudson said that the government ‘should make the practice of CMCs unlawful’

Desmond Hudson said that the government ‘should make the practice of CMCs unlawful’

Desmond Hudson said that the government ‘should make the practice of CMCs unlawful’

Desmond Hudson said that the government ‘should make the practice of CMCs unlawful’

Desmond Hudson said that the government ‘should make the practice of CMCs unlawful’

Desmond Hudson said that the government ‘should make the practice of CMCs unlawful’

The FOS – annual review, far from positive!

20th June 2017
Written by

The Financial Ombudsman Service [FOS] has issued its annual review 2016/2017. This year’s version attracts the catchy title, “fairness in a changing world”. The report always attracts intense scrutiny, in particular from industry observers and consumer champions. These parties are, as always, ...

Read More

Barclays – The global reach of UK PPI mis-selling

31st May 2017
Written by

It has been reported in UK based broadsheet newspapers, such as the FT and Telegraph, that Barclays is facing a lawsuit in excess of £1bn for the mis-selling of a payment protection product [PPI] at a subprime credit card business called ‘Monument’. The alleged claim is being made by CCUK ...

Read More

I’m a mortgage prisoner…get me out of here!

11th May 2017
Written by

The term “mortgage prisoner” has been banded around for a couple of years now, but it could soon start taking on a much more significant meaning. A “mortgage prisoner” is a term used to describe someone who is trapped into paying a high interest rate on their mortgage, typically their mortgage ...

Read More

Financial claims other than PPI – Nothing new

8th May 2017
Written by

A recent article in The Daily Telegraph suggested that the financial claims “multi-billion cash cow” was refocusing from Payment Protection Insurance [PPI] claims to other areas. Although The Daily Telegraph is correct to say that there are many other areas where financial products have been ...

Read More
BBC

BBC – The PPI ‘time bar’ and unclaimed Billions

9th January 2017
Written by

It is highly likely that any lay person reading almost any edition of a popular tabloid newspaper would conclude that we live in a compensation culture. Every day readers are bombarded with articles suggesting how much more car insurance costs are a result of voluminous and vexatious whiplash ...

Read More
RBS FCA

RBS GRG – Another half-cocked ad-hoc FCA sponsored compensation scheme in the making

19th December 2016
Written by

When the long awaited Royal Bank of Scotland (RBS) Global Restructuring Group (GRG) proposed compensation scheme was announced on 8th November 2016, it was soon met with a barrage of predictable criticism. But why the outpouring of such disbelief, disappointment and condemnation? Of course it ...

Read More

Vulnerable PPI consumers hit by tax on savings changes

24th November 2016
Written by

Tax on compensation interest If a complaint about a mis-sold Payment Protection Insurance [PPI] is upheld the compensation paid by the firm is intended to put the customer back in the position they would have been in had the mis-sale not taken place. This is often called ‘general redress’ and ...

Read More

Fixed Rate Business Loans – Falling bank Base Rates

21st September 2016
Written by

The risks were not explained by many banks! Just when you thought interest rates had bottomed, we are now heading even lower. On 4th August 2016, the Bank of England cut the Official Bank Rate from 0.5% to 0.25%. There is even talk of another cut later this year, so we could be heading to […]

Read More

PFCA 5 year analysis of FOS PPI data

6th September 2016
Written by

FOS update shows PPI complaints are not reducing! The Financial Ombudsman Service [FOS] have released up to date Payment Protection Insurance [PPI] uphold statistics to the period ending June 2016. The figures show that more PPI cases were referred to FOS in the first half of 2016 compared with ...

Read More

Advertising Standards Authority revised guidance for CMCs

30th August 2016
Written by

The PFCA was pleased to be invited to engage with the Advertising Standards Authority [ASA] prior to the release of its recent updated guidance, which has been designed to help CMCs comply with the Committee of Advertising Code [CAP Code]. There has, in recent times, been a number of complaints ...

Read More

Claims handlers in banks should be busy in 2017

11th August 2016
Written by

RBS GRG Report – The 7th Coming Earlier this week the Financial Conduct Authority (FCA) provided (yet) another indication of when the long awaited report into the conduct and practices of Royal Bank of Scotland’s Global Restructuring Group (GRG) was due to be released. This amounts to the 7the ...

Read More

Sweep the past under the carpet with a ‘time bar’ – £252b conduct costs

27th July 2016
Written by

Recent research by CCP Research Foundation (one of the few organisations in the World who collate global published banking data) have recently issued details on global banking fines. At any level the sums are eye watering. According to the data the world’s 20 biggest banks have paid out £252bn ...

Read More

Towergate fine a ‘wake up call’ for CMCs

18th July 2016
Written by

It almost seemed an insignificant paragraph (5.14) in the Carol Brady [CB] Independent review of claims management regulation (March 2016), but I have always said the proposal to implement a senior managers regime [SMR] requiring the pre-authorisation of individuals who perform ‘controlled ...

Read More
Black and white business people working together at small office

Mis-sold Store Card PPI – BBC Radio 4 ‘You and Yours’ PFCA

20th June 2016
Written by

The PFCA were delighted to shine our ‘Spotlight’ on the store card PPI issue for the BBC Radio 4 ‘You and Yours’ programme on 17 June 2016 as this product was often mis-sold and worse mis-understood; many customers don’t even know they have it. Financial Ombudsman Service [FOS] statistics give ...

Read More

Fee capping Consultation Paper Response – PFCA

24th May 2016
Written by

In view of the positioning that the PFCA takes in helping Claims Management Companies [CMCs] improve standards, a number of non-member CMCs, journalists and stakeholders have asked for a copy of our response to the Claims Management Regulator [CMR] fee capping consultation [Cutting the costs ...

Read More

CMC fee capping’ Consultation Paper – Post response

10th May 2016
Written by

Missing link in the consultation The Claims Management Regulator [CMR] fee capping consultation [Cutting the costs for consumers – Financial claims] gave claims management companies [CMCs] very little time to respond to what was regarded by many to be the most significant Consultation Paper ...

Read More

CMR ‘fee cap’ Consultation Paper

25th February 2016
Written by

Who is at fault for the PPI scandal – Banks or CMCs ? The Claims Management Regulator [CMR] has launched its ‘fee cap’ Consultation Paper in response to the Chancellors statement in his last budget. There has already been extensive press coverage of the consultation which could have far ...

Read More

The financial claims world has a lot to contemplate at the moment

18th February 2016
Written by

The outcome of the Carol Brady HM Treasury review looking at how CMCs should be regulated and who should regulate them is still awaited. The Financial Conduct Authority [FCA] consultation in respect of a Payment Protection Insurance [PPI] claims time bar and rules surrounding unfair ...

Read More

CMC pays £30,000 for each complaint as Legal Ombudsman increases fees

7th December 2015
Written by

The 2016-2017 Legal Ombudsman [LeO] Claims Management Company fees consultation has been released. Although, actually it is not much of a consultation! Frankly, it’s more of a final demand, which makes the contents all the more unsatisfactory and odd. Those who operate in various sectors of ...

Read More

Is the FCA right to consult on a PPI claims deadline?

3rd December 2015
Written by

After much speculation, the Financial Conduct Authority [FCA] Payment Protection Insurance [PPI] deadline consultation has been issued. It is axiomatic that the FCA needs to review it practices and guidance from time to time and as the current PPI complaint handling rules have been in place for ...

Read More

Should Consumers consider Lewis and Lloyd’s PPI Deadline ‘rumours’ carefully?

3rd September 2015
Written by

During the summer break, it was reported that Martin Lewis, MoneySavingExpert.com and Richard Lloyd of Which? had joined forces to write a joint letter to the Financial Conduct Authority [FCA] expressing “serious concern” at media reports that the FCA was considering introducing a time bar on ...

Read More

PPI complaint handling – FOS referrals a wakeup call following LBG fine?

9th June 2015
Written by

The PFCA calls for greater scrutiny of cases referred to the Financial Service Ombudsman [“FOS”]. The recent Financial Conduct Authority [“FCA”] financial penalty (£117,430,600) levied against Lloyds Bank Group highlights the fact that genuine Payment Protection Insurance [“PPI”] claims are ...

Read More

A full judicial review – Mis-sold Interest Rate Hedging Products

28th April 2015
Written by

A full judicial review – Mis-sold Interest Rate Hedging Products Last Friday, the long awaited hearing occurred in the Royal Courts relating to a judicial review of the Financial Conduct Authority (FCA) Interest Rate Hedging Product (IRHP) Review Scheme. The result of which could lead to an ...

Read More

PPI Claims Management, handling failings – FCA announcement

16th April 2015
Written by

Regulators have never shirked their responsibilities in respect of holding banks to account when they fail to treat customers who complain fairly. The Financial Conduct Authority [FCA] predecessor (the Financial Services Authority [FSA]) first showed it was serious in these matters around the ...

Read More

FCA deadline as mis-sold Interest Rate Cap Scheme closes

31st March 2015
Written by

So here we have it, the finishing line is not only in sight but many businesses are about to cross it. Like any race, there will be winners and losers. Let’s be very clear about what the 31st March deadline actually means for businesses and take a look at your chances of getting paid redress ...

Read More

Financial Ombudsman Service PPI data shows the complaint process is still broken!

27th February 2015
Written by

The recent release of the Financial Ombudsman Service [FOS] complaints data for the period ending 31 December 2014 shows a mixed set of results. No wonder the Financial Conduct Authority [FCA] announced last month that it was to “gather evidence on current trends in complaints on Payment ...

Read More

RBS and a New Year, Same Old Same Old: Enterprise Finance Guarantee Loan Mis-selling

28th January 2015
Written by

One thing is guaranteed, the banks’ financially enterprising ability to mis-sell the most simple of products. After exactly 14 days into 2015, Enterprise Finance Guarantee (EFG) Loans are fast making their way onto the roll of dishonour of another banking mis-selling scandal with a flurry of ...

Read More

Interest Rate Hedging Product Mis-selling – Advent Calendar

24th December 2014
Written by

So here it is. A full advent calendar of 24 useful tips for businesses that are seeking information about Interest Rate Hedging Product Review (Swaps) Mis-selling. There are many questions from businesses about the FCA IRHP Review Scheme, as there seems to be a real lack of information ...

Read More

RBS prompts time for an independent review of the Independent Reviewer?

10th December 2014
Written by

As reported in The Times on 4th December 2014, the Royal Bank of Scotland (RBS) has been accused by a whistleblower, of trying to minimise compensation for the Interest Rate Hedging Product (IRHP) mis-selling scandal with the aid of the independent reviewer. A mis-selling scandal – How is ...

Read More

Mis-sold Foreign Exchange market was FiXed

13th November 2014
Written by

The FX Market background Before I delve into the meat of yesterday’s news, whereby the Financial Conduct Authority (FCA) imposed their largest ever fine across the banking industry, I thought it would help to provide a snippet of background information about the Foreign Exchange (FX) market so ...

Read More

Clydesdale’s Full Year Results and the hidden ‘hidden Swap’ bill

6th November 2014
Written by

National Australia Bank (NAB), parent company of Clydesdale Bank PLC (Clydesdale), which operates under the Clydesdale Bank and Yorkshire Bank brands, announced their Full Year End results last week for the Year End 30 September 2014. Mis-selling by the UK bank drives exit The headline figure ...

Read More
Black and white business people working together at small office

Swaps Claims activity – My top 5 developments

16th October 2014
Written by

It’s been some time since my last update on this blog. Apologies for this absence, but as you can imagine there has been an enormous amount of activity in the Swaps claims space over the past 6 months. To help our readers, I thought it would be useful to provide a summary update of the […]

Read More

Clydesdale Bank. What a difference a year makes!

13th October 2014
Written by

This time last year, the press were reporting a National Australia Bank turnaround of the Clydesdale Bank. Even the BBC headlined the story as “Clydesdale Bank completes turnaround ahead of schedule”. At the time, the stories showed that the Glasgow-based lender had reported a pre-tax profit of ...

Read More

FCA Complaints update masks the reality

1st October 2014
Written by

Those who focus on press release headlines will, no doubt, be relieved that the recent Financial Conduct Authority [FCA] complaint data showed an overall reduction in complaints by 5%. Of course, any reduction is welcome, but the figures show that financial service firms still received over 2.3 ...

Read More

PPI redress calculations exposed by the FCA are worrying

2nd September 2014
Written by

The Financial Conduct Authority [FCA] has issued the results of a thematic review into banks fair treatment of customers when calculating the redress due in respect of Payment Protection Insurance [PPI]. As a direct result of the review, banks, credit card providers and personal loan companies ...

Read More

FCA fines RBS and NatWest for mortgage advice failures

27th August 2014
Written by

The national and specialist financial press are awash with the most recent Financial Conduct Authority [FCA] fine, this time against The Royal Bank of Scotland [RBS] and NatWest, in the sum £14,474,600 (which would have exceeded £20 million had the businesses not agreed with the FCA findings ...

Read More

Bank fines – what should be done with the money?

9th July 2014
Written by

It was widely report in the press at the weekend that millions of pounds is to be spent on improving Wi-Fi on commuter trains across England and Wales. The total investment was suggested to be around £90m. And where is the government finding this amount? Simple, from the fines that the Office ...

Read More

Mortgage complaints on the increase the last chance saloon for lenders

27th May 2014
Written by

The Financial Ombudsman Service [FOS] annual report for the 12 month period ending 31 March 2014, is not for the faint hearted; it is 179 pages long and rammed full of detailed analysis and statistics. A review of the report allows readers to compare complaints in different business areas ...

Read More

Raise standards of behaviour Banking Standards Review

20th May 2014
Written by

The long awaited report by the former CBI chief Sir Richard Lambert into banking standards has been released today. It will be no shock to those who are connected with the banking industry that he has recommended a radical programme of reform or that he concludes that there is a, “strong case ...

Read More

FCA data shows consumer complaints over 5m in a year

14th April 2014
Written by

The Financial Conduct Authority [FCA] has recently released consumer complaints data which shows 2,479,029 new complaints were opened against financial services firms between July and December 2013. This clearly shows that huge numbers of consumers are still unhappy with the products they have ...

Read More

Santander UK fined £12.4m for widespread investment advice failings

27th March 2014
Written by

The Financial Conduct Authority [FCA] has announced that it has fined Santander UK Plc £12,377,800 after the regulator uncovered serious failings in the way it offered financial advice. In their press release, the FCA state that “The failings took place despite repeated communications and ...

Read More

Inappropriate use of Alternative Redress in PPI Claims continues!

24th March 2014
Written by

Monthly figures collated from members of the PFCA show that the use of alternative redress is levelling off. However, although the use of alternative redress may have reduced from the heights of the second quarter of last year, the detail shows that some lenders are still applying it to more ...

Read More

PPI claims headline FOS complaints. The good, the bad and the ugly!

5th March 2014
Written by

The Financial Ombudsman Service [FOS] has just released the latest six-monthly complaints data (relating to the period 1 July and 31 December 2013) in respect of individual financial businesses – including the high street banks and biggest insurers. The data highlights the good, the bad and the ...

Read More

CMCs and MPs see Claims Management Regulator’s teeth!

3rd March 2014
Written by

For as long as I can remember, the Claims Management Regulator [CMR] has been the subject of claims in the media that it does not have the capacity, expertise or resource to be able to properly regulate CMCs. The claims are usually made by those businesses that are complained about who are ...

Read More

Will the missing PPI billions ever be paid?

4th February 2014
Written by

Another bank pre-result announcement (we have to wait another 10 days for the full detail) and yet another hike in the provision for Payment Protection Insurance [PPI] mis-selling! This time it’s the turn of Lloyds Banking Group [LBG] to up their provision. The size of the increase is another, ...

Read More

PPI complaints dominate FOS Consultation Document

14th January 2014
Written by

At this time each year, the Financial Ombudsman Service [FOS] issues an annual plan and budget consultation document. This year is no exception and the most recent consultation document is shown on the FOS website at http://www.financial-ombudsman.org.uk/publications/2014-ourplans.pdf. This ...

Read More

A Christmas Carol in Swaps Land “Tis the season to be merry”

23rd December 2013
Written by

Well, unfortunately, that largely depends on which ‘camp’ you are in. In one camp, businesses will be entering the festive period with a warm hearty smile having been offered redress for a mis-sold interest rate hedging product (IRHP), especially if it’s a “full tear up”. The other less ...

Read More

Action needed on Costly complaint calls

20th December 2013
Written by

The Financial Conduct Authority [FCA] recently tweeted, “@TheFCA: We also don’t believe it’s fair for banks, insurers, lenders etc. to profit from people making a complaint #costlycalls”. We agree and so, it appears, do other organisations who lobby on behalf of consumers. In the ...

Read More

Complaints about claims firms will be handled by the Legal Ombudsman

16th December 2013
Written by

Justice Minister Shailesh Vara MP has announced that complaints from consumers relating to the practices of claims management companies will be transferred from the Claim Management Regulator [CMR] to the Legal Ombudsman. The change came when a late amendment to the Financial Services (Banking ...

Read More

Another bad day in the history of bank mis-selling

12th December 2013
Written by

It’s another bad day in the sorry history of bank mis-selling. This time, a record fine of £28,038,844 has been dished out to Lloyds Banking Group firms for serious sales incentive failings. How did we get to the position where it takes a regulator, and not those in charge of a bank, to ...

Read More

Financial Conduct Authority [FCA] fires another warning shot across lenders bows.

2nd December 2013
Written by

It is the week for Financial Conduct Authority [FCA] warnings! Firstly, we saw the FCA issue a “Dear Chief Executive” letter, generally seen as a warning shot across the bow, setting out its position on mortgage lenders requests to change mortgage contracts, including Standard Variable Rates ...

Read More

Financial Conduct Authority [FCA] fires a warning shot across lenders bows.

22nd November 2013
Written by

The Financial Conduct Authority [FCA] today issued a “Dear Chief Executive” letter, generally seen as a warning shot across the bow, setting out their position on mortgage lenders requests to change mortgage contracts, including Standard Variable Rates [SVR] and Tracker Rates [TR]. The letter ...

Read More

Claims Management Regulator to use financial penalties?

13th November 2013
Written by

The Claims Management Regulator [CMR] today announced that it is seeking new powers to impose financial penalties on non-compliant Claims Management Companies [CMCs]. It is proposed that amendments are made to the Compensation Act 2006 to give the Secretary of State the power to impose a ...

Read More

What is the true cost of PPI claims?

29th October 2013
Written by

Financial claim watchers were eagerly awaiting the quarter 3 interim results of Lloyds Banking Group [LBG] to see if Payment Protection Insurance [PPI] claims had turned a corner. As it happens the results give some mixed messages. Looking for positives, it is noted that monthly complaint ...

Read More

What does the most recent FCA Complaint data tell us?

22nd October 2013
Written by

The Financial Conduct Authority [FCA] has recently released its comprehensive complaint data for the first half of 2013. Not surprisingly there are both positive and negatives in the information. The positives The FCA press release shows that each of the 5 most complained about firms (Barclays ...

Read More

Have PPI claims peaked with 5m more to go?

22nd October 2013
Written by

Natalie Ceeney, chief ombudsman at the Financial Ombudsman Service [FOS], was recently reported as suggesting that complaints about the mis-selling of insurance on loans and mortgages may have peaked. The suggestion comes on the back of a reduction in complaints landing in the FOS office from ...

Read More

Panorama Exposes Britain’s New Banking Scandal

17th October 2013
Written by

So some 15 months after the first reporting of widespread mis-selling of Interest Rate Hedging Products (IRHPs), the BBC’s Panorama pick up on the issue. Congratulations to the BBC, but why has it taken so long? I have picked out a number of key takeaways from the programme, here are my top 4: ...

Read More

Mis-sold Interest Rate Hedging Products-progress is slow!

9th October 2013
Written by

In September, the Financial Conduct Authority (FCA) published its first update on the progress made by banks undertaking a review of the sale of Interest Rate Hedging Products (IRHPs) to small and medium sized businesses. The first update was eagerly awaited as it arrived some four months after ...

Read More

FCA review of PPI complaint handling highlights serious problems

26th September 2013
Written by

The Financial Conduct Authority [FCA] has released a report following its thematic review of Payment Protection Insurance [PPI] complaint handling by medium-sized firms; which covers smaller high street banks, building societies, credit card providers and personal loan companies. There should ...

Read More

FOS News & Mis-sold Packaged Bank Accounts

24th September 2013
Written by

The Financial Ombudsman Service [FOS] September 2013 news bulletin focuses on issues surrounding packaged bank account products and it is right to do so. There are those who dismiss the consumer detriment caused by such products. Generally they come to this view because of the comparably low ...

Read More

FCA fine AXA for mis-selling Investments

16th September 2013
Written by

The Financial Conduct Authority [FCA] has fined AXA Wealth Services Ltd [AXA] £1.8m (which would have been £2.5m if AXA had not qualified for a 30% early settlement discount) for failing to ensure it gave suitable investment advice to its customers. The FCA in its final notice concluded that ...

Read More

Calls for the FCA to take over Claims Management Companies regulation are wrong!

12th September 2013
Written by

The financial trade press is swamped with the reporting of comments made by Jonathan Evans (chair of the All Party Parliamentary Group on financial services and insurance) in respect of the regulation of Claims Management Companies [CMCs]. Evans is quoted as saying, “I believe claims management ...

Read More

Media rounds on banks after release of the FOS Complaint Data

10th September 2013
Written by

One has come to expect a significant increase in the volume of column inches in the national media devoted to financial product mis-selling after the release of the Financial Ombudsman Service [FOS] six-monthly complaint data, but the articles appear to be particularly anti-bank since the ...

Read More

FCA forces lenders to treat Interest-only customers fairly!

5th September 2013
Written by

Those involved in the mortgage market should not need reminding of the corner stone principles of statutory regulation which have served the industry well since the end of voluntary regulation over a decade ago. These principles are that regulated firms should know their customer, understand ...

Read More

CPP- Is there no end to bank mis-selling?

28th August 2013
Written by

Consumers and consumer groups are rightly asking “Is there no end to bank mis-selling?” What has prompted the most recent round in bank criticism? Answer: the long awaited compensation proposals from the Financial Conduct Authority [FCA] on the mis-selling of ‘card and identity protection ...

Read More

Emptage Case and costs prompts statement from FSCS

21st August 2013
Written by

It was thought by some that when the Financial Service Compensation Scheme [FSCS] lost a judicial review in the Court of Appeal in June [Neutral Citation Number: [2013] EWCA Civ 729] that the implications would be minimal.The action was brought by a consumer, Ms Emptage, whose claim for full ...

Read More

Financial Ombudsman Service review fees would quadruple!

19th August 2013
Written by

The recent comments made by Natalie Ceeney, Financial Ombudsman Service [FOS] chief executive, during a Money Marketing interview has certainly motivated many financial advisers to make critical comments on financial adviser forums.The thrust of Ms Ceeney’s comments suggested that if FOS was ...

Read More

2.4 million Payment Protection Insurance [PPI] claims to be reopened?

8th August 2013
Written by

The campaign to reopen rejected Payment Protection Insurance claims looks more likely than ever to succeed as the weight of evidence identifies that many claims were not dealt with appropriately the first time round. The potential consumer detriment is so significant it would be unjust if ...

Read More

Bank’s woes deepen over PPI?

2nd August 2013
Written by

I read the Lloyds TSB news release in respect of its 2013 half year results with great interest; yes all 159 pages! Clearly everyone at Lloyds TSB should be congratulated on the return to statutory profit. As the media are reporting, the results should enable the business to look forward to a ...

Read More

What is the real update on PPI pay back and provision?

2nd August 2013
Written by

In a recent Reuters interview Natalie Ceeney, the Chief Ombudsman at the Financial Ombudsman Service [FOS], confirmed that FOS is now receiving 2,000 new cases every working day compared with 3,000 at its peak six months ago. However, Ceeney was reluctant to predict future volumes stating, ...

Read More

No let-up in firm’s actions that causes the Financial Services Authority [FSA] concern.

23rd July 2013
Written by

Earlier this month, the Financial Conduct Authority [FCA] released the Financial Services Authority [FSA] final annual report. As one would expect, it gives a fascinating insight into the year leading up to its abolition in April 2013. What alarms me is the number of times the FSA had to use ...

Read More

Swinton £7.38 million fine calls into question insurance policy add-ons

22nd July 2013
Written by

Swinton Group Limited (Swinton), one of the UK’s largest insurance retailers, has been fined £7.38 million by the Financial Conduct Authority (FCA) after it was found to have used aggressive telephone sales strategies and, therefore, failed to treat customers fairly. The fine could have been ...

Read More

FSCS Annual Report 2012 – 2013

10th July 2013
Written by

The most recent annual report from Financial Services Compensation Scheme [FSCS] shows that the level of complaints received and compensation paid were slightly lower when compared to the previous year, but the levels are still too high and continue to show no signs of a really significant ...

Read More

A reduction in those giving insurance and investment advice would not be in the best interests of consumers.

10th July 2013
Written by

The Financial Services Compensation Scheme [FSCS] has issued a consultation paper [3 July 2013] on how it should be funded and it has already been suggested that advisers could face higher FSCS levies if the proposed funding model is approved. The funding of the FSCS presents a complex dilemma ...

Read More

Desmond Hudson said that the government ‘should make the practice of CMCs unlawful’

9th July 2013
Written by

A number of online blogs and articles, including one in The Law Society Gazette, are reporting that the Chief Executive of the Law Society [Desmond Hudson] has publicly called on claims management companies [CMCs] to be outlawed. Putting the comment into context he was, at the time, giving ...

Read More

PPI Compensation – are the new bankers serious?

8th July 2013
Written by

The final part of the three part series called “Bankers”, which aired on BBC 2 on 22 May 2013, painted a damning picture of the last generation of bankers. A long list of leaders from the current generation lined up to candidly admit that the previous custodians of the banking industry had ...

Read More

FCA reinforces complaint handling requirements to prevent mis-selling

8th July 2013
Written by

The Financial Conduct Authority (FCA) has sent out a warning shot to all regulated firms with regard as to how they handle complaints and how they identify and correct the root causes of reoccurring issues. The warning shot came by way of a fine and decision notice against Policy Services ...

Read More

The FOS doing the bank’s job with PPI helping millions of Consumers

7th July 2013
Written by

A recent interview with Natalie Ceeney, Head of the Financial Ombudsman Service (FOS), with the Mail Online gave a fascinating insight into the scale and complexity of running the organisation that is tasked with the job of ‘putting right what has gone wrong’. The understatement of the ...

Read More

Demonising Customers does not help

7th July 2013
Written by

FOS to take on 1000 more staff to deal with PPI Claims The Daily Telegraph recently quoted Natalie Ceeney, Head of the Financial Ombudsman Service (FOS), as criticising banks for “demonising customers”. Her thoughts will not surprise those who have been involved in helping consumers with their ...

Read More

Payment Protection Insurance (PPI) claims pay out update

6th July 2013
Written by

The most recent figure issued by the Financial Conduct Authority (FCA), published 27 June 2013, shows that since January 2011 £10.1 billion has been paid back to customers who complained about the way they were sold Payment Protection Insurance (PPI). This follows £424 million being paid out ...

Read More

Sir Mervyn King warns over mortgage debt time-bomb

6th July 2013
Written by

Sir Mervyn King, the outgoing Governor of the central bank, gave a stark warning about interest rates recently. He warned that the high levels of mortgage debts of homeowners in their 30s and 40s meant that if the Bank of England raised interest rates by just one percentage point, millions of ...

Read More

Financial Conduct Authority (FCA) issue compensation claims warning

5th July 2013
Written by

Sir Mervyn King, the outgoing Governor of the central bank, gave a stark warning about interest rates recently. He warned that the high levels of mortgage debts of homeowners in their 30s and 40s meant that if the Bank of England raised interest rates by just one percentage point, millions of ...

Read More

Financial Conduct Authority [FCA] to collect more bridging loan data to prevent mis-selling

5th July 2013
Written by

The exponential growth in bridging lending has been fuelled by four factors, all of which increase the risk of mis-selling: The tightening of main stream lenders lending policies has created the opportunity for secondary lenders to develop a suite of short term products where a higher rate of ...

Read More

FOS view on vexatious claims

3rd July 2013
Written by

Anyone who reads the financial trade press will be acutely aware of the strength of feeling against Claims Management Companies [CMCs] within the financial community. The volume of negative comments from financial intermediaries appears to have reached another crescendo following a House of ...

Read More

Recent Advertising Standards Authority Adjudication gives helpful clarification

2nd July 2013
Written by

A recent Advertising Standards Authority [ASA] Adjudication has given helpful clarification in respect of two aspects of the way financial claims are marketed. A Claims Management Company [CMC] had carried out a campaign which acknowledged that prospective complainants could handle their own ...

Read More

PFCA why now?

1st July 2013
Written by

There will be those who ask, “why is there a need for a professional financial claims association (PFCA) now? To answer this question one needs to think back to why financial claims management companies exist. Over the last few decades there has been a steady stream of financial product ...

Read More