By the time you submit your PPI claim to your bank, people from their claims resolution department would pick up your complaint and process it. The slowdown of the process is due to the obvious de-prioritisation of complaints most banks and financing firms do when it comes to payment protection insurance.
Banks would take one of the two options available to them. One option is to outright reject the claim and hope that the complaint itself is incomplete as per judgment by the Financial Ombudsman Service. A second path is to just recompense the complaint despite the validity of the complaint — which is not the best option for banks but it is the least expensive because the bank will not have to pay FOS administrative fees per complaint it receives.
Banks and financing firms have no way to simplify their own complaints process and instead focuses on recompensing enough consumers to make the problem of PPI mis-selling disappear quick enough that banks may recoup their losses from refunding PPI policies. The flawed processing system of PPI complaints had made it impossible to resolve payment protection insurance without a PPI claims deadline and had helped contribute £40bn in total for PPI refunds.
The only resolution could be the Financial Conduct Authority’s sanctioned PPI claims deadline — or it may only encourage more consumers to make a claim. Without encouraging banks how to simplify the claims process especially on their end of evaluating and judging a complaint properly, the problem of PPI definitely goes beyond the appointed deadline.