The Financial Conduct Authority notes that only about one out of five consumers are making claims regarding their payment protection insurance — an initial expectation as its “Consumer Communications Campaign” has yet to launch as advertising firm M&C Saatchi is currently developing its message. The PPI claims deadline was announced early March and it lands on 29 August 2019.
Majority of consumer groups have condemned the decision given that the FCA’s handling of the scandal is in favour of the banks. Which? said that banks have yet to be pro-active with helping consumers know more about their possibly mis-sold payment protection insurance. Moneysavingexpert founder Martin Lewis said it is “flabbergasting” to see the Financial Conduct Authority side with banks as the consumer public have yet to trust them that they would not commit these same errors with future financial products and services.
However, Citizens Advice supported the decision seeing that it would “help to draw a line under the ongoing scandal.” Its main concern is to ensure that all complaints are handled effectively.
FCA Chief Andrew Bailey defended the decision to impose an August 2019 deadline. He mentioned that consumers are not urged to make a complaint unless a deadline is in effect. Along with their public address campaign in the form of an advertisement, the City watchdog hopes to make progress with payment protection insurance.