The FCA has reportedly cleared a chunk of the £42.2m bank-sponsored public service announcement funds to M&C Saatchi who would handle the development and promotion of the PPI deadline possibly in June 2019. In a freedom of information request, Saatchi will receive £444,413 payment for its initial campaign strategy and creative development work undertaken according to the Financial Conduct Authority.
The FCA confirmed the earlier allocation of funds for both M&C Saatchi and Manning-Gottlieb OMD of £42.2, which would cover any further media campaign buying activity.
The campaign to raise awareness regarding payment protection insurance claims raised funds throuhg a levy on 18 banks who had 100,000 complaints reported from August 1 2009 to August 1 2015.
The FCA intends to use the advertising campaign to raise awareness for PPI, much to the disappointment of consumer groups who believe the FCA is siding with the financial industry. The banking industry is also disappointed due to the push-back of the deadline from 2018 to 2019.
According to UK consumer lobby group Payback Time, consumers could lose out to £23bn more in PPI claims when the FCA pushes through with the deadline. The lobby group used ongoing trend data from banks allocating £1bn on a quarterly basis for insurance policy refunding.