When will we know if the deadline is fixed? When is the deadline
likely to be? Will there be a deadline or not?
There are so many unanswered questions that it can seem like the
proposed PPI deadline of 2018 is yet another twist in the saga that
refuses to go away. But, is there a deadline and how will it be
decided?
The deadline proposal is a thorny issue
Up until 2016, any discussion or suggesting of imposing a
deadline for PPI compensation claims was shot down in flames by the
regulators and other authorities. Still reeling from the wholescale
mis-selling of a financial product, the banks were in no position
with regulatory authorities such as the Financial Conduct Authority
(FCA) to start calling any shots.
The attitude towards the banks was clear - get your own houses
in order before you start demanding changes.
However, as time has gone on and there has been a more
conciliatory tone from the banks, it seems that the attitude may
have softened. The school of thought now is that a line may need to
be drawn under the whole affair so that banks, some significantly
weakened by the crisis, can start to rebuild their businesses - but
along more ethical and fair lines.
May, could, possibly…
However, any mention of a PPI deadline is proceeded by is
couched in soft terms - there is possible talk of a deadline, there
may be a deadline…
The regulatory body, FCA, is cautious of a deadline. A criticism
that was levelled at various agencies and organisations as the
scandal broke was that they had little, limited power to make any
changes or force banks to do anything.
This was an embarrassment and so they were afforded more powers
to pull banks, lenders and financial companies back in to line.
However, they are cautious of being criticised by customers,
consumer organisations and so on. They want to be confident that
everyone who is entitled to their money back has the means to make
a claim.
Marketing issue too
The introduction of a PPI deadline will, say the FCA, be
accompanied by an over reaching marketing campaign to make everyone
aware that there is a deadline, and how to go about making a
claim.
There are sceptics; there are those that believe the banks will
delay looking at cases and then shrug their shoulders, saying
nothing can be done because the deadline has passed.
Up in the air!
However, it is all still an issue that has not be resolved and
no deadline proposed as yet. It may be announced that there is a
deadline being imposed but, there again, the PPI saga could rumble
on for some time yet…