The Financial Conduct Authority’s decision to impose a PPI deadline upon the request of banks and financial institutions appears negatively towards consumer groups. The consumer group Which? voiced out that the FCA has made it easy for banks to unlikely pay consumers their rightful compensation given the time constraints.
Which? warned that the 2018 deadline for all payment protection insurance claims is an ‘ill-judged’ decision.
Today, the total bank PPI bill is now at £30 billion with only about £20bn paid out to consumers.
Which? is not confident with the FCA’s advertising campaign. The campaign aims to inform all consumers about checking whether their loan, mortgage, credit card or other form of financing is mis-sold payment protection insurance.
Which? is concerned that scammers may take advantage of the situation by asking elderly and vulnerable consumers to use their service and have proper representation for their claims. The consumer group blames the financial industry for their failure to simplify the PPI claims process for anybody intending to make a mis-sold PPI complaint.
MPs warn about the PPI deadline being an ineffective solution to possible future mis-selling scandals. Currently, MPs and observers are looking at crowdfunding and Packaged Bank Accounts as possible mis-selling scandals in the financial industry.