Consumer group Which? has called out the Financial Conduct Authority for its “ill-judged” setting of a PPI claims deadline by 2018.
According to the consumer champion, consumers are the only ones to lose while banks have everything to gain. Which? also specified that the opportunistic banks would use the situation to delay consumer claims for longer, effectively enabling them to save money.
The Professional Financial Claims Association also said the elderly are the most vulnerable to the deadline.
By capping fees on claims management company services, the elderly will have to wait to be serviced as much as any consumer in the market, which would cause further delays.
Currently, the mis-sold PPI total is at £32 billion. Lloyds has taken the majority of mis-sold policies with a £16 billion refund total just for itself.
Meanwhile, Which? had asked the FCA regarding its measurement of success for the PPI claims deadline.
In response, the FCA had called on banks to present proposals on simplifying and easing the PPI claims process before the deadline and advertising campaign to encourage the reclaiming of PPI refunds commences.
PPI is the biggest financial scandal in the United Kingdom with over two million consumers mis-sold insurance policies.
Consumers are disqualified from their benefits should they have had a medical condition, was at an old age or was self-employed during the time they took out the insurance.