The Financial Conduct Authority tasked all UK banks who had mis-sold PPI to make the procedure to make claims easier and faster. The imposition of a deadline will not be unfair to consumers affected by the unwanted insurance policy. Consumer groups were vocal when the FCA announced the deadline for claims without considering the consequences for consumers.
However, it is likely CMCs are the only ones who will find issues with the deadline. The Financial Ombudsman reports that 40% of consumer complaints were decided against the complainants. The service added that most of the complaints submitted came from claims management companies.
Meanwhile, the FCA will launch its advertising campaign aimed to explain the refund claiming process to consumers. It is likely to be the advertisement reporting Arnold Schwarzenegger reprising his role in the 80s “Total Recall” action movie explaining how to recall having a mis-sold PPI, and how to make a claim.
Lloyds Banking Group shocked its investors after claiming that it had only dealt with less than half of the PPI complaints it faces. However, with the deadline in place, Lloyds will enable itself to bypass millions of customers who were mis-sold policies by their employees. After the set PPI claim deadline, no consumer can forward a claim once again.