27 February 2017
The proposed deadline for PPI compensation claims is muted to be June 2019. As yet, there has been no official confirmation from the Financial Conduct Authority (FCA).
But news has leaked that the FCA have started to spend part of their £42 million budget on the creation of a hard-hitting, leave-no-stone-unturned marketing campaign to encourage consumers to make a claim for PPI compensation.
The FCA has paid the advertising agency giant M&C Saatchi around half a million pounds as part of their plans to introduce a PPI June 2019 compensation deadline.
With the proposed date in mind - but no firm announcement yet - as part of the consultation plans, the FCA promised a promotional and communications campaign to encourage people with genuine PPI compensation claims to claim their money back.
The total cost of the communications campaign is thought to be around £42 million and the initial payment to Saatchi is for "campaign strategy and creative development work undertaken. In other words, it is setting the parameters and creating the basis for a future promotions campaign.
It is understood that the FCA has engaged the services of advertising agency Manning Gottlieb to create the actual adverts and campaign but, the agency has yet to start work on the project.
The FCA has been at pains since its creation as part of industry-wide changes since the PPI mis-selling scandal, to hold the banks and lenders to account.
The budget for the advertising campaign is thought to be coming from a levy on 18 firms that have reported over 100,00 PPI complains about advising, selling and arranging PPI from 1 August 2005 to 1 August 2015.
Although banks favoured a 2018 deadline, the FCA were not to be rushed and the proposed June 2019 was muted,
And it seems they are sticking to their guns. The PPI campaign is due to begin around June 2017, tying in with the two-year 'notice window' that consumers must be given as part of setting a firm deadline.
But, in December 2015, the FCA announced that it has received a large volume of responses to its original proposals around PPI and thus, many people think, it could push back the date. This could mean that the June 2019 deadline is pushes back further.
PPI compensation claims are still riding at a steady rate and have not dropped off as many banks and lenders predicted.
The Financial Services Ombudsman is still working hard on PPI complaints, with around a third of their annual workload being PPI cases. In the first 9 months of the current financial year, they had received over 110,000 PPI complaints.
Do you have a claim for PPI compensation? Find out today with Scottish PPI Claims.