The UKís market watchdog, the Financial Conduct Authority (FCA), have informed the public that they will deliberate on implementing a deadline for customers claiming reparation on the mis-selling of loan insurance.
The FCA will marshal the necessary evidence and determine whether customers who were mis-sold payment protection insurance (PPI) have been reimbursed properly. They will further decide on whether the current system effectively compensates victims of mis-selling and is ìenhancing the integrity of the UKís financial system.î The report on this issue is due to be released in the summer of 2015.
The watchdog stated its intentions for after they have released the report. The body commented: ìThe FCA will then consider whether further interventions may be appropriate, which could include a consumer communication campaign; a possible time limit on complains; or other rule changes or guidance.î
The FCA have said that in the build up to the publication of the report in the summer, if there are consumers who feel they have been the victims of PPI fraud, they should communicate their discontent with their bank and enquire as to how to be compensated. If still unsatisfied, they are implored to contact the Financial Ombudsman facility.
This comes after the release of data by the FCA showing that creditors have remunerated customers to the figure of 17.3 billion with the bill still expected to grow. Moreover, from January 2011, banks have received more than 14 million complaints concerning PPI and have disbursed compensation for over 70% of those complaints.
Banks attempted to encourage the FCA to impose a deadline of April 2014 for people who were mis-sold PPI to claim compensation and they did this alongside a pledge from the British Bankers Association that would pay for a 12 month advertising campaign to alert people to this change. However, it sparked outrage among consumer bodies and the FCA are purported to have rebutted them and told the banks that they first needed to prove such a change would benefit customers.
This announcement comes alongside another investigation by the regulator into whether banks are doing all that is necessary in order to protect customers against this type of negligence again. In August 2014, the regulator ordered over 2.5 million claims to be re-investigated to ensure fair compensation had been dispensed.
The executive director at ëWhich?í Richard Lloyd said about this issue: ìItís good that the regulator is finally checking up on how banks are handling the PPI complaints scandal. It has been clear for years that banks should be doing more to resolve claims fairly and make it as quick and easy as possible for people to get back the money theyíre entitled to. People shouldnít be forced to take their complaint to the Financial Ombudsman, or use unscrupulous claims management companies.î