Is the August 2019 PPI Deadline Looking Shaky?
There had been talk for years, almost since the PPI debacle started, of imposing a deadline for PPI complaints. Initially, everyone was reluctant, determined that the customer should get their money back. But then the Financial Conduct Authority (FCA) decided that the process needed to come to an “orderly conclusion”. But is the PPI deadline on shaky ground?
Why impose a PPI deadline?
Until 2017, regulators and consumer organisations, declined to set a deadline. But the attitude of the Financial Conduct Authority (FCA) changed.
With a new head in place, it seemed that the PPI debacle was going to come to a force end, with the imposition of a deadline.
In March 2017, the FCA announced that the last day for new PPI complaints to be lodged as to be 29th August 2019.
But as soon as the deadline was announced, critics started to question the real reasons behind the deadline. Is it, as the FCA says, to protect consumer interests or is it to protect the balance sheets of the banks and UK lenders?
Whilst some criticised the deadline, others took action. A claim management company (not Payment Protection Scotland) has formally wrote to the Financial Conduct Authority registering their opposition to the deadline. This could have potentially forced the deadline to an official judicial review.
What is a ‘judicial review’? Could it spell the end for the August 2019 deadline?
The claim management company involved believe that the deadline is ‘unlawful’, and this is why they are a seeking a judicial review.
A judicial review is a type of court proceeding where a judge looks at the lawfulness of a decision or an action made by a public body. In this case, the judge will consider where the FCA has acted lawfully in imposing a deadline for PPI compensation claims.
The first stage in this review process is for the person or organisation challenging the decision to send what is known as a ‘pre-action protocol letter’. This is the letter that pre-warns of the coming legal challenge.
In their pre-action protocol letter, the claim management company argues that the introduction of the deadline is not being set in the best interests of the consumer, who are still owed as much as £80 billion.
The FCA were given time to respond, although the claim management company did say they would grant an extension if the FCA asked for one, which they did. The powers-that-be concurred with the FCA that everything was being done to help the consumer and upheld the legality of the PPI August 2019 deadline.
The PPI deadline is firm, and we are now mere months away from the August deadline. People are continuing to make claims – Lloyds announced they were adding another £100 million to their PPI compensation pot to cover claims from April 2019 until August. If you want to make a claim, you must do so NOW!
If you think you have a claim for PPI or would like to know more, call our team today.