UK’s PPI scandal spans almost half its entire population with consumers paying an average of £3,000-5,000 for an insurance policy that initially renders them ineligible for its benefits because it was mis-sold. To spur UK consumers to make their claims immediately and avoid prolonging the scandal, the Financial Conduct Authority had approved a PPI deadline by August 29, 2019.
According to We Fight Any Claim, a claims management group, the FCA’s approval of the deadline is unlawful because it breaches the responsibility of the FCA by constitution to defend and protect the consumer. The CMC had threatened the FCA with judicial review should it consider an unlawful move in such a form. Stephen Knafler QC, commissioned by the CMC for a legal opinion on the matter, said the move was “probably unlawful.”
Consumer groups have also condemned the setting of a PPI claims deadline given that banks have yet to improve their claims services for consumers. Hiccups are common in the decisions of UK banks regarding PPI claims — with most rejected claims coming into the Financial Ombudsman approved seven out of 10 complaints.
The UK’s PPI bill is set to go beyond £40bn as the FCA had released guidelines that the landmark Plevin v Paragon Personal Finance had established. All commissions above 50% undisclosed to end-consumers of PPI could have the latter consider the PPI as mis-sold.