The Financial Conduct Authority (FCA) revealed recently that there could be a deadline put on PPI claims, in order to draw a line under the mis-selling issue. Customers could be forced to make their claims by early 2018, following the news that the financial industry has called on the FCA to put a time limit on the claims. It is argued that this time limit will help rebuild public trust in the financial services industry.
“More than 10 million customers have already received compensation for the policies that were sold alongside loans and credit cards” – According to The Guardian.
The FCA stated that “customers who told us they intended to complain, also said that they had not yet got around to doing so. The open-ended nature of the complaints-led approach appears to contribute to this consumer inertia” A deadline is likely to result in a surge in the number of claims from those who hadn’t yet got round to making a claim, before time runs out.
Lloyds announced that they have “increased the provision for expected PPI costs by a further £500 million” (please note this figure includes Administration costs). It is thought that other banks could follow suit and add to the amount they have set aside, in order to prepare for the expected surge in claims.
Which? ‘’A time limit must not reward those banks that have dragged their heels over paying out compensation’’ – Which? Response to today’s FCA’s PPI timeline announcement. 02.10.15
The Guardian PPI claims could face 2018 deadline under FCA plans. 02.10.15
Lloyds banking group PLC ‘’Chief financial officer’s review of financial performance’’ 28.10.15 http://www.lloydsbankinggroup.com/globalassets/documents/investors/2015/2015_lbg_q3_ims.pdf
The Financial Conduct Authority’s Statement on Payment Protection Insurance (PPI) 02.10.15