Pros and Cons of Imposing a PPI Deadline
With the looming possibility of a 2018 deadline being imposed on claims for compensation for mis-sold payment protection insurance (PPI), there may be some people wondering why this is a good idea.
Surely, a deadline is not in favour of the consumer? However, the Financial Conduct Authority (FCA) is now of the opinion that it just may be but, what are the pros and cons? Will the consumer lose out?
Ends the saga, restoring confidence and faith in the banking system
There has been many people who believe that the PPI mis-selling scandal has not only rocked the UK banking industry to its core, but has also dented it reputation abroad as being a system that is the epitome of trust and confidence. By bringing this long running saga to an end, it will help restore confidence and faith.
Allowing it to drag on means some people may never claim
The FCA also believe that many people are not making a claim as apathy has set in. By imposing a deadline, it will rouse people to take action.
A quality marketing campaign
As part of the deadline process, the FCA is suggesting that there is a detailed and high profile marketing campaign to inform people of what they need to do, and by when. This will supplemented by the banks themselves, as well as reputable claim management companies such as PPI Scotland.
There are some downsides, however…
It is really in favour of the consumer?
Some people argue that the imposing of a deadline favours the banks, and not the consumer. The banks have suggested a deadline on several previous occasions, but these requests have come to nothing.
Some people also feel that it is a political move, a way of ending the embarrassment of the PPI mis-selling scandal. The FCA have been at pains to point out that everything that can be done to ensure no one misses out, will be.
Some banks say they will struggle to meet the deadlines imposed on processing claims
Some smaller banks and lenders say they will struggle to meet all the claims in the allowed time allowed to respond. As yet, there has been no response to this concern.
It will lead to an influx of cases
It may lead to an upsurge in cases but this is something that has been seen before. There were a peak of complaints for PPI compensation in 2011 and 2012 but since then, the figures, although still high, are decreasing month on month.
Do you have a claim? Find out by calling Payment Protection Scotland.