27 November 2017
Back in 2013, we blogged about banks pressuring the then banking regulator the Financial Services Authority, for a PPI deadline. The answer was a resounding no but four years later, the PPI deadline August 2019 was announced. What changed?
There has been a significant shift in attitude as well as regulatory changes that mean the PPI deadline became a date that was actively talked about.
The Financial Services Authority ceased to exist and became the Financial Conduct Authority (FCA) instead. It was like its predecessor in many ways but 'with teeth'. In other words, the FCA has the power to enforce change and they believe that banks and lenders have made sufficient changes that mean something like this couldn't and shouldn't happen again.
The FCA has also had a change of leadership in recent times and the tone has been more conciliatory as a result. In other words, the FCA think that the consumer is on their way to trusting the banks again and the time has come to introduce a deadline for PPI claims.
We asked this question back in February 2013 when some people believed that a PPI deadline was unmanageable. But in 2017, it was decided that a cut-off time for PPI complaints could be managed.
But how much has the situation changed from February 2013 when we first reported on the issue of a PPI deadline? We said,
The Financial Services Ombudsman (FSO), the independent agency that mediates between customers and the financial sector, is struggling to cope under a workload that is seeing them handle 1,000 PPI complaints a day, and a staggering 3,000 daily phone calls asking for PPI advice. The FSO is now telling customers they may have to wait up to a year for a decision.
This is still happening with the Ombudsman saying that in the coming year they expect to receive 180,000 new cases about PPI in 2017. This is on top of dealing with complaints from consumers about other financial products.
There are also concerns from others that less than half of the people with a claim for PPI are yet to do so and that a deadline, coupled with an advertising campaign could set off an avalanche of PPI compensation claims that the banks, lenders and services like the Ombudsman would not be able to process in time.
The FCA has yet to comment on this but is clear that the deadline stands.
We then went on to talk about the importance of making your claim for PPI compensation and we stand by that today. Don't wait for the compensation deadline before you decide to claim your money back. Contact our team today!