The Public Accounts Committee (PAC) along with other MPs believe that PPI mis-selling and other current and future financial scandals are both troubles that the FCA-sanctioned claims deadline could not stop.
The PAC said the 2018 PPI claims deadline won’t work for the best interests of consumers. It said that the elderly and disabled would be worst-hit by the deadline without proper representation and are better prone to scammers who charge up-front fees for false PPI claims.
The PAC highlighted that the PPI deadline does little for the upcoming potential financial scandals including the instances of scams using the new Pension Freedoms Act enforced in April 2015.
Meg Hiller, Chairman, Public Accounts Committee suggested that the growing menace of mis-selling of PPI and other financial products is a reflection and indicator of the risks faced by consumers in financial services market. “Many people have waited years for a decision on compensation and because of the way they have pursued their claims, even then they may not receive the full amount. Serious risks of further mis-selling remain,” she warned.
UK MPs have urged the FCA to use stronger action against the issue of mis-selling. Among suggested solutions are higher fines for issues, better education for sales personnel, incentives system based on consumer satisfaction and the return of the three FCA probes that would investigate troubles in and help improve the banking industry.