The Mis-Sold PPI Deadline: The FCA’s Official Roles
The UK is split whether the FCA should give in to the demands of both the British Bankers Association and Confederation of British Industry to put a deadline to mis-sold payment protection insurance claiming.
From 2008, almost every bank in the UK had set aside millions of pounds to repay millions of customers who fell victim to the sales scandal.
The FCA made it firm this year that it would impose a deadline to end the scandal by 2018. However, all statements came from news sources. The FCA released its official statement just today.
Plevin Case Final Statement
For one, the entire banking industry worried about the potential increase of PPI refunding because of the Susan Plevin’s case winning against Paragon Personal Finance whose broker did not disclose his commission to the customer, triggering an “unfair relationship” in the process.
The FCA is due to consult on the matter and will also look at all possible requirements for lenders to pay redress in such circumstances. This would include the FCA’s cost benefit analysis of the proposed changes, but these would only apply to PPI.
Responsibilities Until The End Of The Scandal
The FCA will implement a “longstop” date wherein it would encourage all customers possibly mis-sold PPI to come forward and make a claim. PPI claims would end in 2018 upon approval of the longstop date in 2016.
For the meantime, the FCA advertising campaign will proceed to inform consumers of their right to refund themselves of their mis-sold insurance policies.