| PPI Deadline

For a long time the financial ombudsman have been expecting a tsunami of PPI related complaints since the deadline for filing PPI claims had been made public. Its services are likely to witness a surge in demand as the August 2019 deadline draws closer. The Ombudsman for quite some time have been on their toes to process complaints regarding the mis-selling of Payment Protection Insurance (PPI) policies.

After the ombudsman submitted its annual report it has received close to 20,000 new PPI related complaints. It has announced various rules and guidance that were to be enforced with immediate effect and also a two year deadline for receiving all complaints regarding the mis-selling scandal.

“These rules and regulations have been enforced to provide a better understanding to the financial firms for handling the claims related to PPI compensation”, said the principal ombudsman Richard Thompson.

As of now the ombudsman has received nearly 150,000 PPI complaints which are related to undisclosed commissions similar to the Plevin case which is currently awaiting FOS resolution. Richard Thompson also published a 20 page update on the FOS website which assured the victims that things will be taken forward as soon as possible.

PPI was basically intended to provide cover to the insured person against repayments that they could not make due to reasons such as injury, unemployment, illness or death. Despite its immense potential to benefit the insurance industry it was mis-sold on a historic scale and as a result it is the most covered finance mis-selling topic in the media.

There were many issues that were raised in the Plevin case which has prompted many victims to re-open their investigation into the PPI compensation case. Out of these there were many complaints that were initially rejected but now with the Supreme Court ruling in the Plevin case hope is still alive for some of the victims of this scandal.

The number of people who can be impacted by this ruling is a staggering 1.2 million according to an estimate by the FCA. Sighting the level of unawareness regarding the PPI compensation claims procedure the Government along with the FCA have decided to launch a two year communications campaign with the intention of educating the consumers about PPI. With such big plans around the corner the Ombudsman is sure going to be on its toes for the next two years.

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