The newspapers and social media are awash with the PPI deadline,
a signal that the debacle of mis-sold payment protection insurance
(PPI) is coming to an end. But for many people, several unanswered
questions remain.
Is the PPI deadline of 2018 now set?
At the time of publication of this blog post (October 2015), the
PPI deadline of spring 2018 has NOT been set. Currently, the
deadline is in the proposal stage with various groups and
organisations being consulted on whether a deadline is now needed,
the timing of the deadline and how it will work.
How is the deadline date arrived at?
The Financial Conduct Authority who will set the deadline will
have to follow guidelines and regulations that govern imposing a
deadline. These rules state that the consumer needs fair warning
that a deadline is being imposed, thus the lead time is usually 2
years.
When is it expected to be announced that the deadline will be
officially in place?
An announcement is expected in spring 2016, thus making the
deadline cut-off date for PPI compensation claims sometime in
spring 2018.
Are there other deadlines that customers need to be aware
of?
In some cases, customers have already been making a claim for
compensation within a deadline as back in 2013, banks and lenders
were told to write to customers that they knew had PPI and to
invite them to make a claim.
The customer, on receiving the letter, had three years from the
date of the letter to make a claim. In some cases, this will mean
that have until sometime in 2016 to make a claim.
Why impose a deadline?
Consumer groups, regulatory authorities and some small banks
have been opposed up until this point, against imposing a
deadline.
However, the Financial Conduct Authority now believes the time
has come to change its approach to the banking industry in the UK.
Many banks have faced investigations and fines in the way that they
operate, and so many people now feel that the banks have changed in
shape and attitude.
Some people still believe there is a lot more to be done but by
imposing a deadline, a line can be drawn under the biggest
mis-selling scandal ever to have hit the UK banking industry,
confident that lessons have been learnt.
There is also a growing air of confidence that the new shape
regulatory body, the Financial Conduct Authority, has more power
and bite to prevent such a scandal developing again.
Can I still claim compensation for mis-sold PPI?
Yes, you can and Payment Protection Scotland, for a fee, could
help you. Why not call us?