Statement 8 February 2010
The Head of Financial Regulation, Matthew Elderfield, announced today that the Financial Regulator is conducting a review of its approach to how overcharging is dealt with under the Consumer Protection Code. Matthew Elderfield said today ‘It is clear from recent cases that change is needed in how firms handle charging and pricing issues. The Financial Regulator is concerned that financial institutions continue to experience control failures that result in customers being overcharged. While the complexity of cases vary, it is nevertheless disappointing for consumers that resolving errors and providing restitution can be so drawn out at times. It is also apparent that the current approach to enforcement falls short of what is required to provide a strong incentive for faster responses and better practice in the first place. The Financial Regulator is therefore conducting a review to strengthen its approach concerning the timeliness of resolving overcharging in firms and the grounds for enforcement actions against such failures. When appointed, the new Assistant Director General for Enforcement will also be conducting a fundamental review of the Financial Regulator’s enforcement strategy, which will include the approach in this area.’