The Financial Conduct Authority’s March announcement of the PPI claims deadline and its subsequent advertising campaign gave only partial motivation to consumers. According to analysts, PPI figures have already increased by 14% from January to February. Many consumers and claims management companies viewed the FCA will not play neutral regarding the mis-sold insurance scandal.
The City watchdog’s announcement of the deadline came with an explanation. It believes UK’s consumers will be better motivated to make a claim with the presence of finality in the issue. The FCA set the PPI claims deadline on August 29, 2019. It came as a relief to banking institutions. However, the watchdog made it clear that banks have to step up their efforts in resolving the insurance scandal.
CMCs and consumer groups highlight the inefficacy of financial institutions to provide a simpler complaints solution. The process remained lengthy and continued to reject legitimate consumer claims. The FCA said it would fine any financial institution evaluating legitimate complaints with unfair methods.
Meanwhile, UK’s biggest banks claim they are “finished” funding their respective complaint funds. However, they received enormous complaint figures this year. Lloyds received an estimated 600,576 complaints. Barclays received 446,978 complaints in the first half of 2017. RBS received 278,594 in the same timeframe.