PPI scandal has cost banks more than £24 billion in compensation. This has made Britain’s financial watchdog raise an issue of introducing time limit on PPI complaints.
Financial Conduct Authority (FCA) will take a close look at the current trend of PPI complaints. After serious considerations they are going to determine what will happen next. Among changes that will be introduced in PPI complaints is including a time limit on PPI complaints and other rule changes. FCA is expected to announce its finding this year on summer.
Before FCA, FSA was in place and the banks tried to persuade the institution to set a deadline on April 2014. Banks have lost billions of money on people asking for compensation and they are asking FCA to set a time limit. These changes will affect people who are seeking compensation and hence British Bankers Association is funding a year campaign. However this plan is not going well with consumers group.
It is good now that regulator is looking into this matter. In PPI compensation cases its should not take customers too long to receive their refund. Banks should be doing all in their power to resolve these issues and make it easy for their consumers to get their money back.
Richard Llyod says that people should only go to Financial Ombudsman Services on extreme cases. The process should be fast and if the customers have enough evidence then they should be compensated without any delay. FSA said that it would only consider introducing time bar if this would be good for the customers.
This is not the first time that barring financial complaints have caused a lot of controversy. It also happened ten years ago when insurance companies started time barring complaints on mis-selling endowments. In this case they were giving their customers a period of three years to file complaints. This period was from when they received their reprojection letter warning of an endowment shortfall.
Endowment has already ended and we are in the era of PPI complaints. Unlike Endowment this matter does not look as if it is going to end soon. To confirm this chief financial ombudsman, Caroline wayman said that banks will be paying compensation for years to come.
Financial Ombudsman Service is the place where customers can take complains if the fail to resolve their issues. They are receiving about 4,000 complaints every week on PPI. This number has reduced from what they were receiving 18 months ago. This number has reduced by a third from 12,000 complaints to 4,000 per week.
FCA is making their consumers to know that they can make their claims without going through claims Management Company. The process of making your claim is free and simple. A lot of people have been compensated by financial companies.
Many banks have set aside billions to pay their customers who are claiming. These banks are asking FCA to introduce time limit on people seeking compensation. If this is introduced consumers will be required to ask for their compensation in a given period of time.