Martin Lewis, founder of MoneySavingExpert.com, said the Financial Conduct Authority’s public consultation, which includes a sample group of consumers, claims management companies and other institutions who may have mis-sold PPI, was already “a done deal.”
“This is not a consultation in the true sense. We know it’s a done deal that the FCA is going to put a time bar on PPI reclaiming so all it’s really asking for is suggestions of how it tweaks its implementation.
“Yet that doesn’t stop the fact that we are very disappointed the FCA has chosen to put a hold on PPI reclaiming even after many warnings of the danger.”
Which? CEO Richard Lloyd said the FCA didn’t do more to help consumers get refunds but instead intends to use the deadline to push consumers who haven’t made a PPI claim to do so before the deadline.
“It’s hugely disappointing that the regulator is pushing ahead with a blanket PPI time limit. Instead of rewarding the banks that have dragged their heels over paying out compensation, the FCA should be requiring firms to proactively seek out customers owed money.
“Relying on consumers to complain, when many were unaware they’ve been a victim of mis-selling, has clearly not worked.”
However, the Financial Conduct Authority said the deadline would urge consumers to make a PPI claim at the soonest possible time.
The watchdog’s research revealed that about 60 per cent of consumers haven’t made a PPI claim because of the claims’ open-ended nature. A deadline would urge consumers to make a complaint with their bank at the soonest possible time.