It would seem that PPI would continue to pester the United Kingdom despite positive reports of a 50 percent reduction in complaints from the Financial Ombudsman Service
A supreme court ruling between Sarah Plevin and Paragon Personal Finance may push the FCA to add new rules that would mean a new wave of PPI complaints.
The Sarah Plevin v Paragon Personal Finance ruling had been decided that banks must recompense consumers mis sold PPI should the commission for the lender and broker be “substantially high.” The specific threshold amount has not been indicated.
The Financial Conduct Authority is now reviewing PPI rules.
According to the FCA’:
“The FCA is considering whether additional rules and/or guidance are required to deal with the impact of the Plevin decision on complaints about PPI,” it said.
“The FCA will be engaging with relevant stakeholders in the coming months in respect of this and it expects to announce its views on this, including next steps, at the same time as existing work.”
So far, the PPI scandal had costed banks £26 billion from 2010.