Analysts have compiled a report that suggests in the next two years or so, the FCA’s intervention in PPI claims would cause a big spoke before the potential 2018 deadline. According to the report, the FCA’s efforts to end the scandal within two years would see a number of changes that may cause consumer panic.
The banks must prepare to avoid a similar situation to the one which occurred in 2011, in which the banks failed to address consumer refunds for PPI on time due to failures in their refund technology.
In the run up to the proposed deadline the FCA has detailed its plan:
It intends to impose a deadline where consumers would be ‘locked out’ of claiming by the end of the period. The FCA would strictly adhere to this deadline policy, but this could cause a delay to the deadline.
There has been much debate over the practicality of the FCA’s advertising communications. The advertising campaign will urge all customers to check whether they were mis-sold PPI. Each UK bank that mis-sold policies has been ordered to provide clear instructions on their products, such as vocabulary used, and the techniques that were employed in selling them, in order for customers to ascertain if they were mis-sold.