12 October 2015
Once again, the media and the internet are awash with claims and counter-claims of there being a PPI deadline looming. Is this the case? What is happening and how does it affect your potential claim for compensation?
The PPI compensation saga began many years ago. When consumers realised they had been mis-sold an insurance product that wad effectively useless, they claimed their money back in droves. The flood gates of compensation well and truly opened.
The number of complaints about PPI is beginning to fall but, don't be lulled into thinking that this means the numbers are minimal; there are still hundreds of thousands of claims being made per month.
In the first half of 2015, 883,000 customers complained about PPI. Eye watering figures but, this was a drop of 16.6% on the same time in 2014 and so this alone gives you an idea of the size of the mis-selling scandal.
It looks likes, with the Financial Conduct Authority (FCA) now of the mind that the time has come to draw the PPI issue to an 'orderly conclusion'. This they say, will end uncertainty for financial firm about long-term PPI liabilities. But they say, the main aim is to begin the process of rebuilding public trust in the financial sector, especially the part of it that sell financial products to customers.
As part of this deadline - which has yet to be set formally, but pundits suggest it will be 2018 - there is bound to be some form of advertising campaign to ensure that all customers with claims have the information they need to make a claim.
In part this had already started with banks being ordered to write to customers who they knew had PPI. They were to inform they had PPI and invite them to submit a claim for compensation.
This groups of customers had 3 years from the date of the letter to make a claim and so, if you have received one of these letters you must act, and act fast too.
There has been a mixed response to the deadline provision, with some consumer groups suggesting that banks may now start to withhold payments, or be deliberately slow in their payment schedules but it seems that there is an end in sight.