“Consumers could be forgiven for asking whose side the FCA is on.”
These were the strong words from Elis Gomer of barristers' chambers St John's Buildings, as quoted by a City A.M. report. According to the barristers’ allegations, the guidance set out by the Financial Conduct Authority (FCA) on Payment Protection Insurance (PPI) payouts essentially undervalues the claims.
“These figures reveal that the UK public are being misled by the banks, with potential compensation on average four times the amount suggested by the body supposedly looking after consumers,” said Gomer, whose chambers claimed banks would be paying more if they followed legal precedent and not the watchdog's guidance.
The report cited Gomer as noting that, under the latter, payouts are the lowest sum possible. The compensation reportedly could be higher if consumers challenge the amounts.
“The question must be asked: What is the FCA’s objective in providing its Plevin guidance, and is it consistent with its strategic objective to ‘secure an appropriate degree of protection for consumers’?” Gomer was quoted by the Financial Times as saying. “The figures show that the true value of a claim is significantly higher.”