| PPI, PPI Deadline

PPI Deadline

Apparently, the plans to place a deadline on making PPI claims are being questioned and challenged by the High Court.

According to the plan, all the mis-selling complaints are supposed to be submitted to the concerned authorities by August 2019 after the Financial Conduct Authority (FCA) announced the deadline in the month of March this year.

However, an institution called We Fight Any Claim has decided to take legal action against the decision and oppose the deadline. They feel that there are still millions of mis-sold buyers who will not be able to receive compensation after the official deadline.

Also, an application has been made out to the High Court for the purpose of a judicial review, which will look into the matter of whether or not the decision taken by the FCA was lawful.

This submission also states the belief that the advertising campaign which was promised will not be successful in raising sufficient awareness about the PPI deadline.

Also, it disputes the levels of undisclosed commission that the commercial banks can keep from these mis-sold policies.

Currently being considered by the court judge, the judicial review requires a response from the FCA before any decision is made on whether to go ahead with the full hearing or not.

If the application is successful, the hearing could be finalised as early as the month of November this year.

Both the organisations, Financial Ombudsman Service (FOS) and the British Bankers Association (BBA) have been officially tagged as interested parties in the given application, which means that they are directly affected by the case without being either a defendant or an applicant.

Stephen Knafler OC, a senior barrister was consulted regarding his legal opinion when the FCA proposals were still in the stage of consultation. In the same, Mr Knafler stated that both the consultation process as well as the proposals within it may be unlawful.

He also said that the PPI deadline is no less than a breach of part of the Equality Act of 2010 and the FCA’s own ‘consumer protection objective’.

The consumer groups and commentators have already declared their views that the deadline will not do any good for the mis-sold customers.

This has further raised fears that the protection of the banking industry is likely to be put before the needs of its own customers.

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