14 December 2015
2015 has been another rollercoaster of a year for compensation claims relating to mis-sold payment protection insurance (PPI).
Just when we thought the saga was beginning to settle down, along comes another issue to fan the flames. In this case, there were two issues that came to the fore in 2015:
However, sneaking in behind these two factors was a third. These two factors mentioned above could have a positive effect for the consumer - it may mean more money is due back to them in some cases - but the third factors may have a potentially detrimental effect: a deadline.
Until 2015, every time the idea of imposing a deadline was muted, it was shot down in flames by consumer groups as well as the banking industry regulator, the Financial Conduct Authority (FCA).
Aware that consumers had already been wronged, the FCA decided that the imposing of a deadline was unfair to them and that the banks were simply not in a position to call the shots.
In essence, this view has not changed but there is a wider view from both the FCA and some (but not all) consumer groups that the banking industry as a whole now needs to move on - and be reformed in the process.
There have been changes to how and what banks can do and offer customer, and when they can attempt to sell them extra products alongside loans and so on.
Some styles of policies, such as the single PPI policy, are no longer in existence with them being seen as unfair to the consumer.
The banking industry itself as a whole has taken a severe knock from the PPI mis-selling saga. At the start of the compensation rollercoaster, banks were not happy at giving customers their money back. They were awkward in their dealings with cases, as well as belligerent as to whether a customer was allowed their money back, and how much it would be.
Attitudes in the main have changed too with many banks realising in this modern age that they need to be more responsive and return the trust and loyalty shown in them by their customers.
Advocates of a deadline purport that it will draw a line under the whole saga, kick start apathetic customers to claim their PPI compensation and allow the banking industry to move forward.