According to the Financial Conduct Authority, the number of PPI complaints it had received from January to June of 2017 had increased by 24% compared to the same time frame in 2016. The watchdog attributes the increase to its March announcement of the PPI claims deadline on August 29, 2017. The watchdog believes the numbers will continue to grow in the following years provided its ongoing advertising campaign is urging consumers to make their own claims as soon as possible.
According to FCA Chief Executive Andrew Bailey, UK consumers lack an incentive to make a claim due to the lack of a PPI claim deadline. Its advertising campaign, while awkward and a bit strange, is effective in raising awareness about payment protection insurance. However, it still lacks technical explanations about how to make a PPI claim and how to receive compensation.
Consumer groups had been against the deadline given the elderly and non-tech savvy individuals are left out of the advertising campaign’s loop. They also noted the banks’ lack of simplification towards improving the procedures to claim refunds and continuing rejections of legitimate complaints.
The UK’s finance sector has set aside a total of £40 billion for mis-sold PPI, making it the most expensive financial scandal in the UK.