A claims management group is working with a senior barrister to halt the FCA’s planned PPI deadline by 2018. An argument that the FCA’s advertising campaign for PPI refunds will be insufficient to address all consumers mis-sold payment protection insurance.
Senior Barrister Stephen Knafler QC, said that the FCA’s consultation may be unlawful as it has an interest to protect consumers. Therefore, giving into the lobbying of banks and financial institutions to create a PPI claims deadline is unfair towards consumers.
The second argument states that the elderly comprise more than half of unresolved PPI claims. In half a decade, majority of the elderly are yet to make a claim despite encouraging advertisement from claims management groups.
Deeming the FCA’s advertising campaign as effective as the latter, Mr Knafler said the FCA is bound to end up in the same result except with a deadline.
PPI is the UK’s biggest financial scandal in history. It has earned over £32 billion in earmarked losses of banks, £20 billion of which they have returned to consumers.
Lloyds, the UK’s biggest lender, takes half of the refund cake at £16 billion set aside with over £12 billion repaid to consumers by the end of 2015.