Tracking the growing PPI problem every step of the way

How the problem unfolded

November 2009

FSA agrees to carry out a review of the FSCS levy.

February 2010

FSA raises the minimum fee for insurance brokers from £450 to £1,000.

March 2010

FSCS increases the levy on insurance intermediaries’ budget from £8.5m to £61.4m in its 2010/11 budget.

June 2010

FSA bills are sent out to brokers itemising a massive leap in FSCS levies, sparking widespread outrage in the sector.

15 July 2010

Insurance Times launches its Fair Fees campaign. insurancetimes.co.uk/backfairfees

Fair Fees - the past year

November 2010

FSA announces delay to the FSCS review and unveils proposed new fee for client money handling.

November 2010

FSCS launches a £4m publicity campaign encouraging members of the public to complain if they have been mis-sold financial services products.

2 February 2011

FSCS announces an increase in the FSCS levy from £61m to £95m.

1 March 2011

House of Commons all-party parliamentary group on insurance and financial services launches an inquiry into the future of the FSCS.

2 March 2011

PPI provider Welcome Financial Services goes into administration – the biggest single new hit on the SBO2 sub-class in the current year.

5 April 2011

MP Alan Meale puts down an early-day motion in the House of Commons calling on the government to accelerate FSCS review.

6 April 2011

FSCS announces final budget for 2010/11, scaling back insurance broker levy rise from £95m to £63m.

April 2011

British Bankers Association abandons its judicial review of the FSA’s PPI claims handling, triggering mass payouts by high-street banks.

25 May 2011

PPI provider Wilmslow Financial Services becomes latest mortgage broker to go bust.

13 June 2011

Biba presents a 7,000-signature petition to the House of Commons calling for FSCS review to be speeded up.

1 July 2011

FSCS annual report shows a more than threefold increase in the number of insurance claims received over the past year.

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