The Financial Conduct Authority (FCA) is said to have ‘caved in’ to the banks over Payment Protection Insurance (PPI) as they stick to their call for a 2 year deadline for new claims.
According to The Times this is against the view of the FCAs own experts as it commented:
“The shift – revealed in internal documents – is the latest example of the FCA softening its stance with banks and comes after a public row this year over its decision to scrap a review of banks’ conduct.”
The newspaper also reported that:
“In private communications its experts had warned that the move would be inadequate and did not comply with its rules about how to treat customers fairly.”
Alex Neill, a spokesman from Which? said:
“The way the regulator and banks have gone about compensating the victims of PPI mis-selling has not been good enough. Steps must be taken to make the process simpler and easier for customers to get the compensation they are owed.”
The FCA is yet to confirm its decision but it is thought that the Treasury also want PPI brought to a close.
Money Marketing – FCA set to cave in on PPI claims deadline – 16 June 2016
The Times – Watchdog gives in to the banks’ demand for PPI claims cut-off – 16 June 2016