24 April 2017
We said that we would bring the news as it came. And now that the date has been confirmed, Scottish PPI Claims understands that the final deadline date for all new PPI complaints is:
This date is different to the June 2019 that we were all expecting so why is the date different? We turned to the Financial Compensation Authority for answers.
The Chief Executive of the FCA, Andrew Bailey, announced the decision in March 2017. Although imposing a blanket deadline for PPI compensation claims has always been resisted, it has been recognised that many customers are unaware they have a claim or are putting off making a claim. A deadline will mean they are prompted into taking action.
"We believe that two years is enough time for consumers to decide if they want to make a claim or not" said Andrew Bailey. Coupled with the feedback they had over the two-year consultation process, the FCA are confident that combined with an all-reaching promotional campaign, customers will have the time and the information they need to make a claim.
Some time ago, a consumer Susan Plevin, won significant compensation against Paragon Personal Finance Ltd. because of the commission paid between brokers on her loan and subsequent PPI policy was no disclosed.
It left many wondering how the FCA would interpret these findings and apply it to al PPI compensation claims.
The FCA have now released a decision on this too. The FCA believe that customers have grounds to complain if the failure to disclose the commission made the relationship unfair.
The 'tipping point' say the FCA when it comes to 'declaring' commission rate is 50%. Any redress would need to include the commission over and above this threshold.
And these claims can be backdated too meaning that anyone who believes that the commission charged on the sale of PPI made the relationship unfair can claim this money back too. And the FCA are telling firms they need to write to all customers, current and previous, about this change.
The August 2019 deadline applied to new claims.
People with a live PPI claim can still pursue compensation after the deadline on the policy they are complaining about, should there be reason to assume there is still a case to answer.
PPI policies sold after 29 August 2017 are not subject to the deadline if a consumer has a complaint about the policy.
The FCA recognises that banks, lenders and financial firms need time to ready themselves for what could be a significant influx in PPI compensation claims.
The FCA too, they say, needs time to ensure they have everything in place for what promises to be a very busy two years in relation to PPI compensation claims.