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Archive for tag: PPI Deadline Scotland

The Proposed 2018 PPI Deadline – a good idea or not?

When the Payment Protection Insurance (PPI) scandal broke, banks clamoured for a deadline by which claims must be made. The Financial Conduct Authority (FCA) and its predecessor Financial Services Authority (FSA) were adamant that this would not happen.

With the announcement that a deadline is now being considered, what does this means for customers, banks, the financial industry and regulators?

  • Customers - the customer has always been firmly at the centre of the PPI mis-selling scandal. With thousands of policies mis-sold to thousands of customers, and sometimes more than once, the likelihood of someone being affected is high. The imposition of a dealing may galvanise people into action. The FCA, concerned that some people could miss out have promised there will be a robust and far-reaching campaign to ensure that all customers affected by the mis-selling of PPI will be able to claim their money back.
  • Banks - banks and building societies are mostly in favour of a deadline, eager to draw a line under the scandal that has not only been embarrassing but a drain on their profits too. They have, at various time during PPI compensation, asked for a deadline only for it to be rejected. The proposed 2-year gap from announcement to deadline however, is something that they would like to see shortened. A shorter time span, they say, will have a bigger impact on galvanising people into action.
  • The financial industry - the PPI mis-selling scandal is just one of many issues that have cropped up in recent years with regard to behaviour of banks, bonuses paid to executives of ailing financial firms, unfair charges on accounts and so on. Whilst most financial experts want these scandals to go away, they also realise they need to be dealt with and resolved. With the banking sector having taken such a knock with regard to its trustworthiness, a PPI deadline in 2018 may be a welcome means of ending the dispute.
  • The financial regulators - the FCA was took a fairly combative attitude toward the banks and the mis-sale of PPI but, with the departure of Martin Wheatley last summer, the attitude has mellowed slightly. Recognising the need to draw a line under the PPI saga and to deal with customer apathy, the FCA thinks that a PPI 2018 deadline may be one way of doing this. Consumer organisations remain concerned that the customer could, once again, be at the bottom of the pile.

Do you have a PPI claim? Find out today by contacting Payment Protection Scotland.