In August 2017, the Financial Conduct Authority earned the ire of consumer groups and the praise of banking institutions after it had announced that August 29, 2019 is the final date to claim for payment protection insurance. Groups and financial observers were quick to point out that the financial industry of the country has yet to improve its services to the benefit of consumers.
However, the FCA said it would strictly implement measures that will ensure banks will implement better claims processes compared to its performance in the last seven years. Complainants had to wait for more than eight weeks to receive word about their complaint’s progress. Cases where legitimate complaints were rejected were also common.
The FCA intends to make a “clean” ending to the PPI scandal as much as possible before the deadline. Several consumer rights groups claim that the deadline is unjust because UK’s customers have the right to file a complaint about any financial product. They added that it is the right of the business proprietor to resolve these issues if sufficient evidence is found.
The FCA is urging all UK consumers possibly mis-sold an insurance policy to make a claim as soon as they can and not “leave it to the last minute” as they expect most Britons would. A Canary Claims survey by the end of 2017 reveals that 80% of their complainants have yet to know there is a PPI deadline. In fact, half of the 20% who have knowledge of a deadline have no idea about the deadlines exact date.