In August 2017, the Financial Conduct Authority earned the ire of consumer groups and the praise of banking institutions after it had announced that August 29, 2019 is the final date to claim for payment protection insurance. Groups and financial observers were quick to point out that the financial industry of the country has yet to improve its services to the benefit of consumers.
However, the FCA said it would strictly implement measures that will ensure banks will implement better claims processes compared to its performance in the last seven years. Complainants had to wait for more than eight weeks to receive word about their complaint’s progress. Cases where legitimate complaints were rejected were also common.
The FCA intends to make a “clean” ending to the PPI scandal as much as possible before the deadline. Several consumer rights groups claim that the deadline is unjust because UK’s customers have the right to file a complaint about any financial product. They added that it is the right of the business proprietor to resolve these issues if sufficient evidence is found.
The FCA is urging all UK consumers possibly mis-sold an insurance policy to make a claim as soon as they can and not “leave it to the last minute” as they expect most Britons would. A Canary Claims survey by the end of 2017 reveals that 80% of their complainants have yet to know there is a PPI deadline. In fact, half of the 20% who have knowledge of a deadline have no idea about the deadlines exact date.
About 80% of UK’s consumers have yet to realize that they have a year left to make a successful payment protection insurance complaint. According to Canary Claims’ Director Kamran Mirshari, hundreds of thousands of consumers might fail to make a successful complaint.
The Financial Conduct Authority’s announcement on the deadline for PPI complaints skyrocketed figures on August 29, 2017. The claims slowdown has arrived during the holiday season and will likely proceed beyond the season. The PPI claims deadline is set on August 29, 2019.
PPI is the UK’s biggest financial scandal. Today, a collective £40 billion has been earmarked for consumer refunds and half of the amount has been returned to customers. Each successful PPI complaint has returned over £3,000 plus compensation.
Economists saw the insurance policy’s refunding in 2012 as “helicopter money.” Many speculate that PPI could leave a dent in the UK’s slowly but surely recovering economy. However, some were quick to point out that 2012 had plenty of spending stimulus that encouraged the population to make purchases, such as the record-low interest rates and help-to-buy government support.
Surprising enough, only 16 per cent of Canary Claims’ clients knew the actual date of the PPI claims deadline. It is likely that many UK consumers will lose out plenty despite the FCA’s advertising campaign efforts to endorse the deadline and creating claims.
claims management company typically earns only if they make your complaint successful. You have no responsibilities over their compensation if they cannot perform well on your behalf. Despite such fair service, authorities are advising against using them. It is possible to perform a PPI claim on your own. However, you may face these three difficulties on the way.
Different Rules Per Bank
Every institution has its respective interpretation of the Financial Conduct Authority’s PPI claims guidelines. This means you might find it difficult if you have multiple claims to perform. While you might have sufficient evidence to support your complaint, you may still face bureaucratic obstacles along the way. To save your time, a claims management company can help you process your complaint.
Save Your Time
If you are to make a complaint by yourself, you might be forced to take a leave from your workday. Not only did you lose income for that day, but if you cannot resolve the complaint during the same day, then you will need to take another leave. A CMC can save you the headache of processing your complaints.
The Financial Ombudsman
The Financial Ombudsman Service’s decision is always final. However, it takes a great deal of time to process especially if you lack data to support your claim for refund and compensation. The FOS may also ask more evidence to back up your complaint within a strict deadline. A CMC can handle these for you and save you the hassle of researching for evidence during your free days.
Payment protection insurance mis-selling was the UK’s biggest financial scandal in history. It had inflicted almost £40 billion in losses for banks because they had to refund consumers for the mis-sold products. Bank employees employed their unscrupulous tactics before the 2008 financial scandal. Thereafter, stricter banking regulation and the use of collective data had been the FCA’s agenda in building its organisation and providing new regulation powers.
The FCA blames the poor structure of the employee incentives system. Because employees face pressure to increase their sales to meet quotas and earn incentives, they have mis-sold products in the process. Even banks did not benefit from such a troublesome event because they had to refund consumers in the process.
Banks are likely to play fair with consumers when it comes to product and service provisions. Despite the increased support for customer service due to the FOS’ efficiency during the entire ordeal, banks will invest in properly structuring its different frameworks to avoid repeating a PPI scenario.
The Financial Conduct Authority will have powerful intervention measures by identifying signals that represent possible immense financial scandals in the future in frameworks. Using big data collected from before, during, and after the PPI scandal, the regulator can foresee possible loopholes and effectively shut down the banks’ frameworks quickly.