The UK Government and regulators must crack down on financial mis-selling, say MPs from the Public Accounts Committee (PAC).
The comments come after studies revealed that more than 12 million consumers had been mis-sold payment protection insurance (PPI) since April 2011.
According to the PAC, firms paid out more than £22billion in compensation over the same period.
The PAC also pointed toward a Parliamentary publication entitled Financial services mis-selling: regulation and redress, published last week.
The publication highlighted that claims management companies (CMCs) had taken up to £5bn out of the compensation set aside for consumers.
Chair of the PAC Meg Hillier said: “The widespread mis-selling of PPI is a vivid demonstration of the risks facing consumers in the financial services market.”
“The fall-out is still with us. 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.”
The PAC said that those who had pursued claims through the Ombudsman had been forced to wait at least two years for a decision, due to a “large backlog of PPI claims”.
Carter Lemon Camerons LLP Solicitors is a City law firm with experience in providing legal services to businesses and victims of financial mis-selling. Unlike many City practices we are happy to act in smaller private legal matters, bringing the same care and consideration as we do to large commercial matters. For more information about our swaps and financial mis-selling services, please contact Chris Corney or telephone: 020 7406 1000.