The PPI scandal has reached new heights with a £43 billion price tag from all UK banks that have mis-sold the policy. However, the Financial Conduct Authority had given banks a deadline for all consumer complaints. Sparking outrage from UK’s leading consumer groups, the FCA remains firm that its consumer communications campaign, which begins by August 29, 2017, can disseminate the necessary information to urge all UK consumers to make a claim as soon as possible.
The communications campaign will end exactly on August 29, 2019, the final date for claiming any mis-sold insurance refunds from the UK banking industry. In line with backdoor agreements, banks are to simplify their complaint procedures to the benefit of consumers.
The chances a UK consumer is mis-sold a payment protection insurance policy is high because almost 64 million units were sold from 1990 to 2010. Banks have yet to resolve half of the complaint figure since the insurance mis-selling was discovered in 2009.
UK’s consumer groups also question the effectiveness of the FCA’s consumer communications campaign. Non-tech savvy and television-centric retired customers will need to receive a formal letter regarding the state of their finances affairs instead of a television public service announcement. Most of the FCA’s campaign focuses on TV and online advertisements, which may leave out this age bracket.