Is there a PPI deadline on the horizon?
If you haven’t made a claim for compensation after being mis-sold payment protection insurance (PPI), then you need to think seriously about making one.
This is because looming on the horizon could be a PPI deadline – or is it a mirage?
In 2015, the Financial Conduct Authority (FCA) not for the first time held a meeting to discuss the possibility of imposing a PPI deadline. Previously, any talk of a deadline by the banks had been met with stony silence and glares from both the FCA and consumer organisations etc.
The banks, said the FCA, were in no position to push for a deadline that would end the mess that they had effectively created by knowingly mis-selling a financial product to thousands of customers.
But attitudes are changing and in some ways, it is needed.
Many financial industry experts believe that a catalyst to the FCA talking of a deadline with banks and consumer groups, is the Susan Plevin case from 2014, the ruling of which could open up yet another can of PPI worms.
In late 2014, Susan Plevin won her case in the Supreme Court that if she had known how much commission was being paid to the broker who sold her PPI, she would have questioned closely the cost of the product and the premiums she was being charged. She argued that this commission should have been disclosed at the point of sale.
The Supreme Court judges agreed with her.
This has made both the Chancellor, the banks and FCA nervous that, if there are implications of this ruling on other cases, it could bring forth a whole new generation of PPI compensation claims.
With the PPI compensation pot already standing at billions, the thought of needing to add more brought about a new level of anxiety and worry.
Drawing a line
The FCA, however, has been at pains to make people understand that this is not about closing the door against another flood of claims, diddling people out of their money. But, they say, the time had come to draw a line under the whole sorry PPI mis-selling scandal.
Customer apathy is also a problem, or so say the FCA, another reason why it is important, they say, to now set a deadline by which time customers will need to make a claim.
Have you made a claim for PPI compensation?
Claiming your money back should not be stressful or onerous. With Payment Protection Scotland, we try to make it as simple as possible. Call us to find out more!