Has a PPI deadline been set?
Not so long ago, there was talk of a deadline by which customers who felt they were mis-sold payment protection insurance (PPI) would have to make their claim – or face losing their money for good.
At the time, there were many reasons why this was not thought to be a good idea;
- It was the banks who were pushing for the deadline, keen perhaps to stem the flow of cash that was leaving their pots as a result of compensation claims
- Smaller banks and building societies did not want a deadline, citing that they would be unable to process an influx of claims within the deadline, with the limited resources they had
- The Financial Conduct Authority and the Financial Ombudsman were off the opinion that there were still many thousands of people yet to claim and imposing a deadline too early would be unfair to the consumer
So what’s changed?
There have been very strong hints at the end of September 2015 that a compensation deadline would be in place but, the consumer would still have until the end of 2018 to make any claims for compensation.
But, this is not about ensuring the banks are looked after but about the consumer which is why this deadline of 2018 has NOT been set yet.
The Financial Conduct Authority will launch a consultation on the right deadline to be imposed that favours the consumer but, financial experts suggest that there will be a window of at least 2 years before the deadline comes into force.
The likelihood is that the deadline would not start counting down until the spring of 2016 thus meaning that consumers will have until spring 2018 to make their claims.
A small piece in a bigger jigsaw
The wholesale mis-selling of PPI has brought the UK banking industry in to disrepute, with consumers losing confidence and trust in the banks. Politically it has been a rough ride too, with many of the electorate believing that the Government and regulatory control has been too weak in bringing the banks to account.
As a result, the Financial Conduct Authority was created; similar in stance to its predecessor, Financial Services Authority, the FCA has been described as ‘having teeth’.
Its original head, Martin Wheatley, was known for his combative approach but the search is still on for a new head of the agency that will now consolidate this overhaul of the banking sector.
What does this mean for you?
It means that until the deadline date is announced – if there is one – you should still make your claim for PPI compensation on the usual way. Payment Protection Scotland can help with your claim, so why not call us?