What does 2016 hold for PPI compensation claims?
It is that time of year when compilations of the top songs, moments, celebrities, films and so on from 2015 start to appear. As we near the festive period, we often look back at what we have accomplished and what the New Year could bring.
It is no different when it comes to compensation claims for mis-sold payment protection insurance (PPI) but what do we think that the coming year will hold in store? Take a look at our five predictions for 2016…
I. Claims will keep coming
The number of claims being made may continue to drop but, if the past responses are anything to go by, just when we think the life is draining from PPI it has a sudden resurgence.
We think that the claims being made throughout 2016 will remain steady, although there may be an upsurge at some point.
II. An upsurge will be linked to an announcement of a PPI deadline
It is no surprise that 2016 will be the year that there will be a decision of imposing a deadline for PPI compensation claims. The deadline date is already out for consultation with some people touting the spring of 2018 as the final deadline date.
Some of the banks, Lloyds Banking Group in particular are suggesting that this is too long a period, and are advocating for a deadline that is much sooner. This banking groups has been hit hard by PPI compensation claim, having to add yet more money to their compensation funds.
III. Banks will need to find more money
Again, just when we thought that the PPI cases were slowing, the banks needed to add more millions to their pots to carry on paying out on claims being made by customers. We think that this trend will continue throughout 2016.
We also predict that if the deadline date 2018 is announced in the spring of 2016 that this will cause an upswing in cases and thus, another lump of cash will needed to be added by banks once again to their compensation pots.
IV. Cases will become more complex in some cases
The Financial Ombudsman Service has already highlighted that some of the compensation claims being referred to it in recent months are becoming more complex, taking longer to resolve.
We predict that this will continue throughout 2016 and that cases will still be found in favour of the consumer in the majority of cases.
V. Customers will become savvier and hardier when it comes to all banking products
PPI is just one product that has rocked the banking industry to its core. There are many other complaints that customers are making on a daily basis with regard to other financial products.
We think this trend will continue as customers become ever savvier as to their rights when it comes to financial products and services.