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.