FSA introduces temporary rule to give recent PPI complainants more time to refer complaints to the Financial Ombudsman Service
FSA/PN/087/2010
28 May 2010
The Financial Services Authority (FSA) has today announced a temporary rule to give customers who recently made a complaint about their purchase of a Payment Protection Insurance (PPI) policy more time in which to refer their complaint to the Financial Ombudsman Service (Ombudsman).
The temporary rule, which suspends the existing six month time limit for referring complaints to the Ombudsman, will come into effect from today and run for five months, until 27 October 2010.
The rule applies to recent PPI complainants who have already been sent a final response from a firm between the dates of 28 November 2009 and 28 April 2010 inclusive.
This action has been taken to ensure recent PPI complainants are not disadvantaged by running out of time to refer their complaint to the Ombudsman while the FSA works to resolve a long term solution to ensure customers are treated consistently and fairly when complaining about the sale of a PPI policy, or when buying a new one.
Notes for editors
- FSA Handbook text related to new transitional rule:
- 2.14 This instrument introduces a new transitional rule preventing complaints about PPI sales from falling outside the six-month time limit for referral to the Financial Ombudsman Service. This transitional measure will be effective for five months from and including 28 May 2010. The rule will apply to those complainants who were sent a final response to their complaint by the firm that they complained to between 28 November 2009 and 28 April 2010 inclusive (the six-month time limit for referring complaints to the FOS commences when a final response is sent).
- 2.15 We made the transitional rule without consultation. This is in the interest of the complainants specified in the rule, who would otherwise lose their ability to complain to the FOS due to falling outside the time limit and would be left potentially unable to secure fair outcomes where firms have not assessed their complaints fairly.
- 2.16 During the five-month transitional period, we will be continuing in our efforts to reach long-term solutions to securing fairer outcomes for PPI consumers who had their complaints unfairly handled by firms, or who intend to complain in the future.
- For an explanation on the Ombudsman’s six month time limit for referring complaints visit: http://www.financial-ombudsman.org.uk/publications/technical_notes/six-month-time-limit.htm
- The FSA regulates the financial services industry and has five objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.