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Archive for tag: PPI Deadline 2019

PPI Deadline 2019 – What Does It Mean?

Have you heard that the Financial Conduct Authority (FCA) may be bowing to pressure and introducing a deadline for PPI compensation claims? What does it mean? And why are the FCA thinking of introducing a deadline?

The FCA up until recently, has always been quite clear that a PPI deadline was some time away. The banks had asked and pressured for a deadline on several occasions previously, but had always been decisively and sharply rebuffed.

Dragging on and on

The first PPI compensation payments were made in January 2011 and now, a full six years and £25.5 billion later, the FCA has decided that a deadline is needed to draw a line under the whole unfortunate and embarrassing episode.

A change at the top

Some commentators note that this conciliatory tone within the FCA has come about since a change in the head of the FCA. Outgoing head Martin Wheatley was stringent in his dislike for a PPI deadline and even less impressed by the banks calling for an end to the mess that they had effectively created.

The new head of the FCA, appointed a year ago in January 2016, Andrew Bailey seems to have a less rambunctious tone toward the British banks and lenders.

Chaotic and deep

There are times when you could describe the PPI compensation process as chaotic.

Back in 2011, the banks made derisory offers of a few hundred pounds to customers who were owed thousands.

Then banks were suggesting that they didn't hold the information to give customers the details they needed to lodge a PPI complaint.

Customers were also having perfectly reasonable and obvious PPI compensation claims turned down thus, resources at the Financial Ombudsman were being swallowed by thousands of PPI compensation cases every month that should have quickly and easily resolved by the banks in the first place.

Then, it became clear that bank staff who sold PPI has made large commissions on sales of PPI something the Supreme Court ruled was unfair.

The PPI saga has also run into billions, with the current total standing at twice the budget for the Summer Olympic Games back in London, 2012.

It is a deeper chasm of embarrassment than anyone could possibly imagine back in the mid-1990s when the sale of PPI was referred to the then Competition Commission.

The deadline stands

If the deadline is confirmed as being June 2019, if you don't claim PPI compensation before this date, it will be too late. Call us now - we can help.