Dwindling consumer confidence in finance companies in the UK has been highlighted by both the Financial Services Authority (FSA) and a global survey by advisory firm CEB.

Martin Wheatley, head of the FSA, told the BBC’s Today programme in the wake of the payment protection insurance (PPI) mis-selling furore and the Libor fixing scandal “society has lost confidence in banks, in finance, in the whole system; we need to restore that.”

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Meanwhile, the Consumer Financial Monitor published by CEB has claimed 47% of 18,000 consumers asked between January 2011 and July 2012 had ‘little or no confidence’ in banks, accountancy firms and private equity firms, with consumer confidence in the UK the lowest of any of the 24 countries surveyed.

The same number, 47%, believed banks could not keep their money safe.

Only 10% believed finance providers shared consumers’ values and 11% felt they offered clear and simple policies. Nearly a third, 31%, were dissatisfied by the range and quality of borrowing products.

However, the focus of the survey was on banks and not secured finance providers, or what CEB has referred to as “alternative institutional funds”, and replicates the findings of the Financial Ombudsman Service that PPI complaints were centred on banks and not the Motor Finance “readership”.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Regulation and PPI

Also asked about the future of finance legislation, Wheatley replied: “The question about regulation is whether it’s always backward-looking, always shutting the door after the horse has bolted, or whether we can get on the front foot. And the message I’m giving to people is: We’re going to be on the front foot.”

In contrast to his toughening stance against those who would manipulate the Libor rate, Wheatley said he did not expect criminal prosecution of those guilty of mis-selling PPI.

“Inappropriate conduct is quite a long way short of fraud,” he concluded.

richard.brown@vrlfinancialnews.com