Consumer groups have advocated against the Financial Conduct Authority’s implementation of a PPI claims deadline at any time because the City watchdog and the banking industry need to create a system that would inform and make it easier for the elderly and disabled possibly mis-sold PPI to claim their refunds.
Elderly mortgage and personal loan customers are at risk of losing their refunds because of the PPI claims deadline. The FCA’s proposed “consumer communications campaign” only focuses on television and Internet advertisements. Generations above millennials and baby boomers are not too tech-savvy, and CMCs are likely to take up the slack to process elderly customer’s mis-sold PPI refunds.
Almost all UK consumers with mis-sold PPI are likely to find their repayments delayed. According to the Association of Claims Companies, which represent legitimate CMCs, data collected from their managers responsible for consumer PPI claim processing report banks increasing their use of an alibi regarding missing consumer details.
The ACC compared its April 2017 data back to its June 2016 data. The data indicated that almost all banks had never used the alibi until it had a sudden spike on March and April 2017, a few months after the announcement of the FCA’s PPI claims deadline.
ACC CEO Simon Evans said banks are likely unable to pay their consumers at the time to use an alibi extensively. The ACC noted Blackhorse, a motor financing company, for jumping from 0% to 80% from January to April 2017 in using the alibi.