It is widely reported that the Financial Conduct Authority (FCA) propose to set a deadline of June 2019 for consumers to make a claim for mis-sold Payment Protection Insurance (PPI).
The FCA issued its proposals in August and in a press release its Chief Executive, Andrew Bailey, said:
“Putting a deadline on PPI complaints will bring the issue to an orderly conclusion in a way that protects both consumers and market integrity. We have listened to all the feedback we have received and believe that the steps we are taking are the right ones.”
Claims for mis-sold PPI continue to be made in their droves. The Financial Ombudsman Service (FOS), which settles complaints between consumers and businesses who provide financial services, received 91,381 complaints in the first half of 2016 and its Chief Executive, Caroline Wayman, commented:
“Although it’s a few years now since PPI complaints peaked, we have been receiving over 3,000 a week for six years running – despite wider expectations that numbers will fall.”
In addition, banks and lenders are still paying out on mis-sold PPI claims and, according to the FCA, over £2billion was paid out in the first half of 2016 alone.
www.fca.org.uk: 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.”
https://www.fca.org.uk/publication/consultation/cp16-20.pdfwww.fca.org.uk: Financial Conduct Authority, FCA provides update on PPI: 25 August 2016
https://www.fca.org.uk/news/press-releases/fca-provides-update-ppiwww.fca.org.uk: Financial Conduct Authority, Monthly PPI refunds and compensation: 4 November 2016
https://www.fca.org.uk/consumers/payment-protection-insurance/monthly-ppi-refunds-and-compensationwww.financial-ombudsman.org.uk: Ombudsman publishes latest complaints data on individual financial businesses: 6 September 2016