Some documents from the Financial Conduct Authority show that it plans to impose a two-year cut-off for PPI complaints.
A report has shown that documents obtained by a claims management company – one that helps PPI claimants, has shown that the FCA is very close to announcing it will press ahead with a maximum 2 year cut-off for complaints.
The original proposal was put forward in October, saying that the number of PPI claims was starting to show a decline and a large percentage were now related to the period prior to January 2005, before it was handed oversight of insurance sales. Banks are obviously keen for a cut-off that will cap their potential liabilities.
The internal documents also reveal that experts to the FCA warn that any deadlines publicised only in a very blanket fashion may fall foul of the regulator’s own Treating Customers Fairly (TCF) rules. They have proposed to the banks instead that they should be forced to directly contact all potentially eligible claimants to let them know they can make a claim.
To date the lenders are obviously resisting this request, as they say their records may not be up to date. This is a very far fetched statement indeed.
A Group of CMCs has pledged to launch a (JR) judicial review into any claims cap on any terms against the industry.