LONDON, July 31 (Reuters) - Four British consumer andbusiness bodies have taken legal steps that could compel theregulator to take swift action to end scams after years offinancial product mis-selling.
In a bid to end the litany of mis-selling which stretchesback to the 1980s with pensions and home loans, Britain'sfinance ministry said on Wednesday that four bodies have appliedfor "super complainant" status.
This means that if they collate enough documented evidencethat consumers of financial services are being ripped off, theFinancial Conduct Authority (FCA) regulator must say within 90days what action, if any, it will take.
Banks have paid over 10 billion pounds ($15.26 billion) incompensation so far for selling unsuitable loan insurance, amounting bill that forced Barclays on Tuesday toannounce plans to replenish its capital buffer.
One of the applicants for super complainant status, theFederation of Small Businesses, is representing companies whobelieve they were mis-sold interest rate protection by banks.
The FCA replaced the Financial Services Authority in April,which was scrapped partly because of mis-selling scandals. TheFCA has a remit to protect consumers with its powers to banproducts.
"By giving certain consumer and business groups the abilityto make 'super-complaints' to the new regulator, the FinancialConduct Authority, we can all help to tackle bad practice morerapidly and robustly than before," UK financial servicesminister Greg Clark said in a statement.
The other three bodies are the Citizens Advice Bureau,consumers association Which?, and Consumer Council NorthernIreland. Others are expected and a decision on who will begranted super complainant status will be taken later this year.
Britain passed a law in 2012 making it possible for consumerbodies to become super complainants and called in March forapplicants.
Barclays (BARC)
