The FCA’s plan to impose a 2018 deadline for PPI is ill-advised and according to the consumer group Which? it would set a dangerous example.
It was first suggested last year that a 2018 time limit on PPI claims may well come into force, which the banks have pushed in order to bring an end to what has been the most expensive banking scandal in history.
Claims Deadline: The Important Bits
The Financial Conduct Authority has liaised with all the major banks and have compiled plans to run an advertising campaign that would encourage customers to accelerate plans to claim.
In response Which? have rightly claimed that the deadline would mean that banks have little pressure to move quickly when it comes to paying back what people are owed.
They have also claimed that the banks should learn from their mistakes and make their processes more simple and quick for the customer who are rightfully owed a sum.
They said that before the FCA goes ahead with a time limit, it should bring in a simpler process for making claims, with banks required to accept complaints electronically instead of via post.
The FCA also called for the publication of more information about how firms have handled claims to date, the amount of redress outstanding, and how the FCA will judge the time limit to be a success.