| Banks, Claiming PPI Compensation, Claims Management Companies, PPI, PPI Deadline, PPI Refund

The PPI issue has now dragged on over a couple of decades. It seems an age has passed since the first complaint was filed against a lender about mis-sold PPI. Still, there are several complaints pouring in on a weekly basis against offending banks and card companies.

For years now, almost every bank embroiled in the scandal has been setting aside special provisions for their customers who were mis-sold a PPI policy. This has affected their routine as well as overall development.

While all the high-street banks may be able to get away with the expenses as they have huge reserves, there are also certain banks who have not been able to concentrate on any productive aspect of their organisation other than sorting out all their PPI issues.

Amongst all this chaos, the Financial Conduct Authority (FCA) has now enforced a deadline to file a claim related to mis-sold PPI. The deadline has been set on the 29th of August, 2019.


Appeal Made To The High Court Regarding the PPI Deadline


The initial deadline date proposed by the city watchdog was met with huge uproar by unhappy customers and customer groups, which forced the FCA to shift the deadline to a year later.

Banks and card companies have had to face a lot of trouble due to the delay. The frequency of claims and complaints further increased as more and more people wanted to get their claims back as the deadline gets nearer.

However, the same issue prevailed even after the new deadline was announced. A claims management company called ‘We Fight Any Claim’ made an appeal to the high court in order to have a judicial review of the new deadline for making PPI claims. The High Court has been looking into the matter since August, 2017.

The legal advisor of We Fight Any Claim, Mark Davies made a statement saying that the reason behind them appealing to the High Court is the fact that a large number of people could still be unaware that they were mis-sold a PPI policy. The enforcement of the new deadline would only bring disappointment to the buyers as they would never get a chance to make a claim especially if they realise that they were mis-sold a policy after the deadline.

The initial plea made by the company to the High Court was rejected, to which the Chairman of Professional Financial Claims Association (PFCA), Nick Baxter reacted saying that the issue was of great sensitivity to the customers and it is disappointing to see such a case being dishonoured by the court of law.

According to the reports published by the FCA, the total payouts made by the lenders to the mis-sold customers amounted to more than £27.4 billion since the year 2011.

A judicial review is typically a court proceeding where the judge thoroughly looks into the lawfulness of an action or a decision taken by an authority or any independent law-making body regarding a certain issue. The claims company that filed for a review believed that the new deadline is also not sufficient enough to sort out all the cases of mis-sold PPI. ‘We Fight Any Claim’ also claimed saying that there were more than £50 billion yet to be compensated, and that it would be impossible to take care of all remaining PPI claims before the deadline arrives.

Finally, the FCA submitted a proposal stating that they would make sure that everyone who has had a PPI policy or even borrowed a loan from a financial institution will be informed about the procedure of getting their policies checked. Tucked between the pressure exerted by a claims company and the banking sector, FCA tried their best to choose a middle route.


Terminator Themed Ads Starring Arnie Rolled out By The FCA to raise PPI Awareness


Considering the issue of lack of information among the public regarding the mis-selling of PPI, the FCA decided to spread the word like wildfire. The institution declared that they would be spending around £42 million in advertising campaigns that would revolve around increasing awareness amongst the public about claiming back PPI.

Such ads would encourage people to go and check their loan and credit documents to make sure that they were not wrongly sold PPI. It would also tell the customers that it is important for them to be informed about every clause in the policy.

This way, the FCA is trying to curb all the resistance coming from the claims management companies and the mis-sold customers. FCA has always been arguing about the fact that it is the customer’s’ duty to check and file the claims after getting to know whether they were mis-sold the policy.

They also laid out a detailed advertising and awareness programme in order to spread awareness amongst the prospective victims of the scandal. In their defence, the FCA argues saying that if in spite of so much awareness people are not able to make their claims on time, the blame should reside with individual people.

However, the FCA’s spokeswoman made an official statement on the pleas not being accepted initially. She said that the institution was extremely happy that the court refused to get a judicial review of the new PPI deadline. The current deadline is supposed to be binding for both the lenders as well as the customers.

The terminator themed PPI ads starring Arnold Schwarzenegger are already out and the cost of the entire ad campaign will be paid by commercial banks involved in the scandal.

As the argument against the deadline rages on the official deadline is still the same (29th August, 2019), but it would be unwise to rule out changes at this point in time!

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