The news that the consumer body "WHICH?" has warned against the announcement of the Financial Conduct Authority or FCA that there will be a time-limit for PPI claims may interest mis-sold customers. Almost everyone may be aware that "WHICH?" is acting as a Consumer Watchdog. According to "WHICH?", this announcement can set a very dangerous precedent.
"WHICH?" points out that the City regulators have planned to set a 2018 deadline for all Payment Protection Insurance. They firmly say that this plan is ‘ill-judged.’ They remind people as to how in 2015, the Financial Conduct Authority has set in motion plans to impose a two-year time limit on all PPI claims. This means that the autumn of 2018 is likely to be the deadline for people.
"WHICH?" also points out that by the end of 2015, the total amount that had been set aside by the big banks for PPI refunds has reached over £30bn. More than £3bn of this sum has been paid out to customers last year alone.
They further add that the FCA is considering running an advertising campaign also to encourage mis-sold customers who have not yet had a chance to claim or who have been believing that their case was not a valid one so they can make their claims immediately. "WHICH?" says that they are slamming this idea because they are of the opinion that this will ‘result in banks having little incentive to pay out compensation swiftly to consumers in any future mis-selling scandals’.
They add that they firmly believe ‘It is clear that banks should be doing more to make these processes for PPI complaints much simpler and fairer.’ They are claiming that before the Financial Conduct Authority goes ahead with any proposals on a time limit, it should bring simpler processes for making a claim. Banks, on their part, should put in place electronic complaints acceptance systems before the proposal of this time limit is implemented.
"WHICH?" continues to point out that the FCA has also called for the publication of more information about how firms have handled claims to date. FCA has also asked for the details such as the amount of redress outstanding. But how the FCA will judge the time limit to be a success is anybody's guess.
"WHICH?" urges those who have apprehensions that they have been mis-sold PPI to come forward and make their claim.
About the Warning Issued by "WHICH?" about the Proposal of FCA
"WHICH?", a Consumer Watchdog, has warned against the announcement of the Financial Conduct Authority or FCA that there will be a time-limit for PPI claims. According to the consumer body, this announcement can set a very dangerous precedent. They are slamming this idea because they believe that this will ‘result in banks having little incentive to pay out compensation swiftly to consumers in any future mis-selling scandals’.
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