Martin Lewis, the founder of consumer help website Moneysavingexpert.com and Which? Executive Director Richard Lloyd calls on the Financial Conduct Authority to avoid introducing a deadline to PPI claims. Both said it would benefit banks and not the consumers. The FCA is set to publish its report into the payment protection insurance mis-selling scandal the following month.
Britain’s banks have lobbied against the regulator to impose a time-limit on complaints following the increasing amounts accumulated by the industry due to mis sold PPI and unscrupulous PPI claims management companies. So far, it has reached £26 billion and is projected to reach £33 billion if the FCA introduces regulatory measures that include the decision of the Supreme Court on the case of Susan Plevin v. Paragon Personal Finance.
Both Lewis and Lloyd said:
‘We believe such a move would be to the detriment of consumers and provide the banks with an undeserved resolution to an issue that is entirely of their own making.’
Banks claim that claims management companies have unnecessarily inflated amounts of administrative costs due to claiming on behalf of customers who never had PPI in the first place.
According to Lewis and Lloyd, Lloyds and Barclays are both rejecting legitimate complaints and have set aside substantial extra provisions for PPI mis-selling.