MPs have asked the Government to scrap plans to frame the new Consumer Protection and Markets Authority (CPMA) as a consumer champion. The Treasury select committee suggests using the phrase could mislead consumers into believing the new regulator is something very different.
They said “If a regulator is promoted as a consumer champion, consumers may falsely believe all financial products are risk free, creating moral hazard. It is simply not possible to protect every interest at all times.”
The title of Consumer Champion has always been reserved for Martin Lewis and other consumer facing organisations. To suggest a regulator is a 'Consumer Champion' doesnt particularly fit with its overall responsibilities to its members.
On another story, complaints about payment protection insurance (PPI) now make up half of the workload of the Financial Ombudsman Service (FOS). The service received a huge 24,955 PPI complaints in the last three months of 2010, which was 50% of the total number of complaints they had received and nearly twice the number lodged with it six months earlier. The increase is largely a result of the judicial review and banks failing to investigate claims properly.
If you think you have been mis-sold a Payment Protection Insurance policy, do not hesitate to contact us via www.ppireturn.co.uk.
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