We are disappointed that claims management companies have made up to £5 billion from payment protection insurance claims, out of compensation that should have been paid to victims of mis-selling by financial services firms. Departments and regulators have been far too passive in allowing this to happen. Many victims of payment protection insurance mis-selling have been waiting years for a decision from the Ombudsman and for the compensation they are entitled to. The Financial Conduct Aithority (the FCA) has taken action to tackle some of the root causes of mis-selling of financial services, but there remain substantial risks of further mis-selling, as well as cultural problems within firms that make mis-selling more likely. The FCA and the Treasury must do more to know how much mis-selling is happening now, and which regulatory activities work best to prevent it.
11 May 2016