Consumers Given Extra Time For Complaints

by Katy Murcutt - Paralegal

01 June 2010, filed under Consumer

Last week the Financial Services Authority (FSA) announced that consumers who have complained about payment protection insurance shall not endure the usual six month time limit to get their case referred to the Financial Ombudsman.

Normally, the Financial Ombudsman Service will not be able to consider a claim made after a period of six months. The reason for the changing of the rules in response to the complaints made regarding payment protection insurance is down to the fact that a record number of people have been affected by this and the FSA had become concerned that some complaints would expire due to the tight time scale in place.

New rules are being finalised to ensure companies handle all payment protections insurance complaints rationally and impartially.

The FSA has said that their primary reason for bending the rules is simply to give complainants more time to prevent loss of the right to complain for some members of the public and to provide a fairer outcome for all those with a reasonable complaint.

Last week, the Financial Ombudsman Service released figures on the number of complaints that had been received regarding payment protection insurance. The number of complaints made has doubled from last and has increased by nearly 60%.
It is thought that the general agreement to extend the time limits in place was to enforce a better handling of the complaints by involved firms as many companies are continuing to reject complaints that should have been upheld according to the Financial Ombudsman.