The Financial Conduct Authority has switched sides and had established a deadline for making complaints to reclaim PPI refunds. The announcement had increased the complaints number received in the second half of 2017.
Payment protection insurance is the UK’s largest and longest-running financial scandal. It was first discovered by the consumer group Which? in 2009. It filed a collective complaint regarding the unfair sales practices of employees to mislead consumers into purchasing an insurance policy they didn’t need.
UK consumers received £3,000 on average for a successful refund. Most of these policies were sold alongside loans and other financing, including credit cards. About half of the UK’s consumer population purchased a needless insurance policy because banks discovered the mis-selling to have begun since the 90s.
Consumer groups had complained about the deadline because banks have yet to improve their claims services for consumers. However, the FCA said they will enforce strict guidelines on improving the PPI claims process for consumers. In the past, complainants had to wait for eight weeks or more to receive word about their claim. In most cases, the complaints were outright rejected despite being legitimate or with enough evidence.
According to the FCA, they are urging all UK consumers to make a claim when they can. The regulator said most are probably planning to make their complaints at the last minute, which is in 2019 and a few months before August 29 of that year, the last day of making claims.