The Financial Conduct Authority (FCA) has delayed setting a deadline date for making PPI complaints, with a decision now expected to be announced in the first quarter of 2017.
The original deadline proposed by the FCA was June 2019 and reports suggest this date could now be pushed back by a few months.
Reuters commented: “FCA Chief Executive Andrew Bailey said the watchdog has received a ‘complete array’ of feedback to its August consultation, with banks wanting to move very quickly while consumer groups were pushing for much more time.”
Some media outlets are also predicting that complaints could reach a record high in 2017 with the imminent deadline and, as a result, banks may have to pay out more in costs.
The Guardian noted: “Banks may now need to set more money aside to deal with PPI, which is the most expensive scandal to affect the UK financial industry.”
The FCA confirmed in December that refunds and compensation for PPI have now reached £25.5billion (January 2011 to September 2016).
Thisismoney.co.uk: Complaints over mis-sold PPI plans set to hit record highs in 2017 as claims flood in to beat deadline – 15.12.2016
theguardian.com: Banks could face more PPI payouts as FCA delays deadline decision – 09.12.2016
FCA.org.uk: Monthly PPI refunds and compensation – 22.12.2016
reuters.com: UK watchdog defers decision on deadline for PPI claims against banks – 09.12.2016
Financial Conduct Authority (FCA) – CP16/20: Rules and guidance on payment protection insurance complaints: feedback on CP15/39 and further consultation: August 2016 Page 115 Our Response
“If we decide, following this further consultation, to proceed with our proposals, we now propose that: …
The deadline rule would come into force 6 months after it was made, by the end of June 2017 with the consumer communications campaign starting at the same time…
The deadline would fall two years after the deadline rule came into force, by the end of June 2019.”