The regulator said: “Banks must now get on with handling all PPI complaints and paying redress where appropriate – the FSA stands ready to work with them on the practical implications of this.
“Today signals the end of years of poor PPI complaint handling and will trigger a dramatic improvement in the way customers are treated when making complaints.”
FSA figures show there have been more than 1.5 million complaints made about PPI since the FSA took over regulation of PPI in 2005.
Yesterday the British Bankers’ Association said it would not appeal the High Court’s PPI judgment to impose mis-selling rules retrospectively – something it originally argued set a dangerous precedent.
The Financial Services Consumer Panel also welcomed the move.
FSCP spokesman, Adam Phillips, said: “We are pleased that the banks have finally accepted the judge's decision, but we remain very concerned about the delays and long running legal action. Consumers who have been mis-sold have had to wait far too long for compensation.
“We hope that the decision by the banks is a sign of a new approach to their relationship with consumers. The banking industry must act promptly to ensure consumers are compensated as swiftly as possible and business practices are reviewed. We welcome a timetable from the BBA to ensure this does not drag on indefinitely.”
