The Financial Conduct Authority (FCA) has today published an update on the progress of its payment protection insurance (PPI) consumer communications campaign and supporting supervisory work.
The campaign has succeeded in increasing consumers’ understanding of PPI and how to check if they have had it, as well as awareness of the deadline for making complaints. 73% of people recognise the FCA’s campaign and over 2 million people have visited the FCA PPI website since the campaign launched.
There has been a clear increase in consumer action:
- 8.4m checking enquiries were made, with monthly volumes 40% up on their immediate pre-campaign level;
- 3.7m complaints were made, 63% up on the 10 months before the campaign;
- More consumers are complaining themselves instead of going to claims management companies (CMCs). 55% of complaints have been made directly by consumers, compared to 45% before the campaign.
£3.7bn of redress has been paid since the start of the campaign, a 64% increase on the previous 10 months.
The campaign features Arnold Schwarzenegger’s animatronic head and urges consumers to make a decision on whether or not to complain about PPI by the 29 August 2019 deadline. The FCA’s report covers how consumers have responded to the campaign in its first 10 months and the outcomes they are getting. It also looks at the regulator’s supervisory work, which ensures firms are making the process as easy as possible for their customers and giving fair, consistent outcomes to complaints.
Firms have responded positively to the campaign aims and supervisory work. They have improved accessibility of their PPI pages, presented information in a more engaging and accessible way and taken proactive steps to improve information for vulnerable consumers.
The FCA has also used its supervisory role to ensure firms have taken the right steps in dealing with consumer complaints and the Financial Ombudsman Service is over-turning far fewer of firms’ complaints decisions.
Jonathan Davidson, Executive Director of Supervision, Retail and Authorisations, said:
We are encouraged by the results of the first 10 months of the campaign. However, with less than a year until the deadline, we will carry on working hard to ensure every consumer has had the chance to make a decision on whether to complain about PPI. Since 2011 more than £30bn in redress has been received by consumers.
Where we have seen firms failing to meet the standards we expect, we have challenged them to make improvements.
As the campaign moves into the second year, the FCA aims to continue the positive trend of improved understanding of PPI, the deadline for complaining and what to do, particularly amongst black and minority ethnic and disabled consumers. The focus will be on strengthening consumers’ understanding of what to do before the deadline and how to make a PPI complaint.
Following the deadline, the FCA will publish its final report in early 2020. It will provide a definitive review of the overall impact of our measures and draw the PPI issue to a close.