22 August 2016
The decision is by no means final and will not be until the consultation period closes on 11 October 2016.
Many financial industry experts believed that the PPI compensation deadline would be set for end of summer 2018 but this announcement by the head of the Financial Conduct Authority (FCA), Andrew Bailey shows that the timescale for bringing an "orderly close" to the scandal is more generous than first thought.
The FCA also announced at the beginning of August that they wanted the deadline to start ticking from the middle of 2017. This would mean that alongside this public announcement, the public awareness campaign that they promised would also kick in.
So far, banks have paid out £24 billion but the five biggest banks are setting aside £32.6 billion in total to deal with future PPI compensation claims.
Andrew Bailey defended the decision saying that the process needed to be brought to a conclusion in a way that benefited the consumer, but also protected market integrity. He promised that the public awareness campaign would target all consumers, paying particular attention to those customers seen as vulnerable.
But not everyone agrees. Alex Neill, director of Policy and campaigns at 'Which?', a consumer organisation that has been at the forefront of the PPI compensation scandal believes that the scandal has shown itself to be one disaster after another.
The main point of contention is that banks are still setting aside money for compensation claims, and yet there is talk of introducing a deadline. This means, says 'Which?', that people who have no idea they have PPI and are owed compensation will miss out.
Many critics also warn that the process of claiming compensation is also too complicated, and needs to be far simpler if everyone who is owed PPI compensation will get their money back before the proposed June 2019 deadline.
The FCA have also been working on how to apply the ruling of the Plevin case in November 2014 against all those cases already settled. The Supreme Court in this case concluded that it was unfair large sums of commission relating to the sale of PPI were not disclosed.
Just when you think the end is in sight with the PPI scandal, something else comes along to fan the flames. If you have PPI, don't wait for the deadline - contact Scottish PPI Claims now!