PPI deadline – what you need to know.

Clock - PPI deadline

FCA pushes ahead with “anti-consumer” PPI claims deadline.

On 2nd August 2016 the Financial Conduct Authority (FCA) stated again that it wants to introduce a PPI claims deadline in mid 2019.  This is despite consumer groups objecting to the plans.

Martin Lewis of Money Saving Expert said…

“But this is an anti-consumer move. How can it argue this is being done to protect consumers when the uphold rate at the Financial Ombudsman is still hovering around 60% (and was nearly 70% in the year to April)?”

Technically the FCA is still consulting, but they make clear that they have not changed their position following consultation with consumer groups, the banks and claims management companies. They are now almost certain to introduce a deadline (in fact, Mr Lewis terms it a ‘”fait accompli”).

Why is it Anti-Consumer?

There’s now the prospect that consumers are going to miss out altogether on money to which they are entitled.  In the FCA’s consultation they have stated this in their “business case” for the PPI claims deadline.  It’s one of the downsides of their plan (Lost redress [for consumers] after deadline).

Sadly, the upsides for the banks seem to play a bigger part in the decision than the rights of consumers although it’s wrapped up in banking jargon…

“Reduced uncertainty over PPI liabilities lowers weighted average cost of capital” and 

“Reduced uncertainty over PPI liabilities allows efficient corporate restructuring in retail finance sector”.

That means that the banks will be able to raise money more easily.   They can also get on with merging or being bought out.  At the moment the uncertainty over PPI is making this more difficult for them.

What does this mean for me if I’ve not claimed?

Don’t worry!  There is still plenty of time to get your PPI claim in.  The FCA is also planning to advertise more heavily to alert more consumers to check if they have a PPI claim.

In practice however, there are other “deadlines” which affect whether or not you can claim so it’s risky to think that there is still two years plus to claim.  We explain that in this other article.

Even if we’re just talking about the 2019 deadline, there are some things to think about. The deadline is likely to be in June 2019, but that’s for putting in the claim itself. For almost all consumers, there will be work to do before that can happen. In most cases, we need to help consumers find out if they had PPI. That means writing to credit references agencies and lenders. They have up to forty days to reply and in practice there are often other delays.

We all know how time flies.  Work, family and all the rest of life are rightly more important than trying to claim against a bank.  For many of us, checking into PPI (with the perceived headache of paperwork and letter-writing that this could entail) has stayed on the end of a long to-do list.

In reality, checking and making a claim is often not as hard as many seem to think.  That’s even if you want to have a go yourself instead of getting help from a company like FairerPPI.

As Martin Lewis points out however, the Financial Ombudsman is still upholding around 60% of complaints that reach them (70% in April 2016).  What does this mean?  It indicates that banks are still wrongly rejecting claims.  Consumers or their claims managers are having to take the fight to the Financial Ombudsman Service (FOS) to get a fair outcome.

Our advice?   Simple.  If you think you were mis-sold PPI or you’re not sure, bite the bullet and find out if you have a claim.

Conclusion

Delaying won’t make it any easier.  Missing the boat altogether will be potentially very painful for some.  If the FCA goes ahead as now seems almost certain, they won’t introduce any PPI claims deadline for some time. However, there are other limits (see our other article).

We also believe that it will take longer to process PPI claims as there will be a rush. The banks have already said as much.

If you would like help, just get in touch (or fill in our form to get a claims pack). If you do decide to get help from a PPI claims management company, please watch out for high fees.  Shop around and make sure you’re getting a fair deal. Our fee is 15% + VAT (18% total), but if we check and find out that you don’t have a PPI claim there’s nothing to pay.

 

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