The Financial Services Consumer Panel (FSCP) has thrown down the gauntlet to firms facing payment protection insurance (PPI) complaints.

It argues that the British Bankers’ Association’s judicial challenge should not be a bar to dealing fairly with complaints by consumers.

Adam Phillips, chair of the FSCP, challenged firms to deal with consumer complaints using the revised FSA guidance on complaint handling, which has just come into effect. He said that consumers should be entitled to be treated in accordance with the guidance, despite the BBA’s ongoing judicial challenge.

The Panel is very concerned by industry pressure which has delayed a resolution and left consumers without compensation.

Phillips said: “Consumers deserve to have their complaints taken seriously. Firms should not hide behind the judicial review to effectively put complaints on hold. The financial services industry has seriously let down its customers by dragging its feet on PPI and it is time for firms to clean up their act.