FCA Responsible For Sudden Spikes in Payment Protection Insurance Complaints

March 25, 2016
by admin in PPI News

Analysts believe that in less than two years, the Financial Conduct Authority’s continuous intervention in PPI claims would cause a massive spike before the 2018 deadline. According to Out-Law.com, the FCA’s efforts to end the scandal within two years would see a number of changes that may cause consumer panic.

Out-Law.com’s analysts said that banks must prepare their systems to avoid a similar scenario in 2011 wherein banks failed to address consumer refunds for payment protection insurance on time due to the failure of their refund system.

A higher number of complaints may instantly crash every UK bank’s internal systems.

In the next few years, 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. Out-Law.com’s analysts believe that the FCA would adhere to its deadline policy in the strictest possible manner, but it may set a delay to its deadline until the summer of 2018.

Other observers had lobbied the FCA extend its deadline. Many question the viability of its communications campaign.

The FCA’s high-profile consumer communications campaign aims to encourage all consumers to check whether they were mis-sold payment protection insurance. Each UK bank who had mis-sold PPI are to give clear instructions to their specific products, such as dialog used to sell the item, among others.