Northampton, England -- (SBWIRE) -- 07/18/2016 -- According to MP's there are 'serious risks' of further mis-selling scandals coming to light in the financial services industry and much stronger action is needed in order to tackle this kind of culture.
Not only did the Public Accounts Committee claim that a 2018 PPI claims deadline wouldn't be in the interests of the consumer, but it also warned that the pension reforms that were introduced in 2015 could raise the risks of further mis-selling. The pension freedoms act, essentially means that over-55s will more of a choice over how they utilise their pension pots.
Packaged bank accounts were also high on the committee's list of concerns, highlighting a recent increase in complaints. This means that consumers generally pay a monthly fee in return for a bundle of products and services included with a current account.
Chairman of the Public Accounts Committee, Meg Hillier, stated: "The widespread mis-selling of PPI and other financial products is a vivid demonstration of the risks facing consumers in the financial services market."
"Many people have waited years for a decision on compensation and, because of the way they have pursued their claims, even then they may not receive the full amount. Serious risks of further mis-selling remain."
There have been calls from the PAC to the FCA and the Treasury to do more to indetify how widespread mis-selling was and what activities work to prevent it.
Departments and regulators have been "far too passive" in allowing compensation that could have been paid to mis-selling victims instead of claims managers.
More than 12 million consumers were mis-sold PPI, and firms have paid more than £22bn in compensation since April 2011, the report said.
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Danny Chapman, Marketing