PPI Scandal: Lenders To Re-Open 2.5m Claims
The City regulator says banks and other lenders are to reassess more than 2.5 million payment protection insurance (PPI) complaints.
The Financial Conduct Authority (FCA) says the claims, which were made in 2012 and 2013, may have either been unfairly rejected or paid too little.
It intervened after investigating falling 'uphold' rates in relation to complaint volumes.
The scandal has resulted in 13 million complaints in total since 2007 - with victims receiving more than £16bn in redress since the FCA started tracking payments in 2011.
The sum is widely tipped to have risen above £20bn.
The FCA added that seven-in-ten claims had been upheld in the consumer's favour since the scandal broke.
Martin Wheatley, its chief executive, said: "Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where its due, is an important step in rebuilding trust in financial institutions.
"In around two-and-a-half million complaints this was not necessarily the case so, at our request, firms will be looking at these complaints again.
"The process is now working well; in just over three years £16bn has been put back into the pocket of the consumer - that is unprecedented.
"Given the enormity of this exercise it is no surprise that there have been some issues along the way but our approach is delivering a good result for consumers."
The FCA issued its update as the Financial Ombudsman Service remains jammed with complaints about PPI.
It has received over one million complaints from people unhappy with the response from their provider, equal to about a quarter of all rejected complaints.
The cash which has found its way back to PPI mis-selling victims has been credited with boosting the UK's economic recovery - particularly the car and property markets - but also wider consumer spending.
:: In a separate announcement Coutts, the private bank that counts the Queen among its clients, has set aside £110m to compensate thousands of customers who may have been sold unsuitable investments.
Its review of advice to clients dated back as far as 1950.
Coutts confirmed the news days after its parent firm, Royal Bank of Scotland, was fined £14.5m for "serious failings" in its advice to mortgage customers from June 2011 to March 2013.