Which? has stated that the PPI date set by the Financial Conduct Authority is ‘ill-judged’. They also said that the compensation process should be made ‘simpler and fairer’ by banks.
In 2015, the Financial Conduct Authority set out plans to appoint a two-year time limit on PPI claims, to wrap up the costliest mis-selling scandal in the financial industry.
This limit has been slated by consumer body Which?, who claim that the decision is ‘ill-judged’ and that it would set a dangerous precedent.
The total amount set aside by the big five banks reached £32bn for PPI compensation by the end of 2015. As over £3bn was paid out to customers last year, Which? was incited to claim that the scandal is “far from over”.
The FCA promised to run an advertising campaign to encourage customers to bring forward and remaining claims, so that they can receive the compensation they may be legally entitled to.
Which? continued to voice that the two-year time limit would “result in banks having little incentive to pay out compensation swiftly and directly to consumers in any future mis-selling scandals”. They then added that: “it is clear that banks should do more to make their processes for handling PPI complaints simpler and fairer.”
The consumer body said that the FCA should bring in a simpler process for making a claim, with banks required to accept complaints electronically, before they go ahead with any proposals for a time limit. These ideas would also tighten up the regulations of claims management companies, making directors personally accountable if firms break the rules relating to nuisance calls.
Which? also called for the FCA to publish more information on how firms have handled claims to date, the amount of redress outstanding, and how the FCA will judge the time limit to be successful.
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