Three Possible Difficulties Consumers Could Face When Claiming

April 4, 2017
by admin in PPI News

No matter the perfection a system might have, it will always have flaws. The UK PPI claims systems from banks are far from perfect. In fact, they are severely flawed yet the Financial Conduct Authority allowed the industry to set a PPI claims deadline by 2019 for a problem they themselves caused.

Facing this reality, consumers would fare better to make their claim as early as this year to avoid the surge of complaints that would possibly peak in the following year. Banks expect higher numbers of PPI claims because of the UK Supreme Court’s Plevin guidance. All PPI sold with a commission earned by representatives more than half the price of the PPI policy is considered mis-sold.

PPI claims procedures are never easier. It would still be wise to get all billing statements concerning payment protection insurance. Consumers could also fare better with rejected complaints by forwarding the failed complaint to the Financial Ombudsman, who evaluates and finds seven out of ten complaints to be valid against bank judgment.

The UK PPI deadline is on August 19, 2019. While many assume hundreds of complaints would still exist after the deadline, banks would possibly reject complaints to the best of their abilities. It saves the money from recompensing consumers or possible challenging complaints through expensive litigations. Both the government and industry are blank towards any possible solutions to these issues.