Martin Lewis of MoneySavingExpert.com said that the PPI claims deadline could leave out some consumers. The 2018 deadline would use a comprehensive advertising campaign to encourage all consumers mis-sold PPI to make a claim.
Analysts said remaining consumers yet to make a PPI claim can send in a letter to their bank or the Financial Ombudsman past the 2018 deadline. However, its resolution may not be similar to claims made before 2018.
Analysts also said if the FCA’s advertising campaign becomes ineffective, consumers will definitely be left out. Denying consumers the right for redress is a direct violation of consumer rights, according to Martin Lewis.
Analysts expect PPI claims are set to increase in number by the end of the FCA’s consultation this February. Observers expect that once the £42 million bank-sponsored advertising campaign starts, consumers may begin making their claims as early as March in huge numbers.
According to the FCA’s initial survey, many consumers trying to find time to make their claims found no urge to do so due to a lack of a deadline. However, Lewis stresses that banks should be punished for their misgivings through bypassing the deadline.
Analysts said banks may have avoided the situation altogether with the implementation of an advertising campaign during the start of the PPI scandal.
The then-City watchdog Financial Services Authority urged banks to contact and create announcements for consumers possibly mis-sold PPI in 2011. Banks had failed to respond properly, allowing other parties to advertise PPI mis-selilng and reclaiming services.