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What is the Problem with PPI?

The PPI saga has been ongoing for some time. Just when you think the flames of the situation have dulled to glowing embers, something comes along and re-ignites the PPI fire.

What

But the PPI fire is about to be extinguished for good with the PPI August 2019 deadline only months away. Before we get to that point, however, there are many more potential issues that could fans the flames, bringing the PPI scandal to an explosive end.

The recent issue to have hit the PPI compensation saga is the introduction of a deadline. Set for August 2019, many people, customers and PPI critics alike, have been left wondering why the Financial Conduct Authority (FCA) always so set against a PPI deadline, changed its mind. Have the banks and lenders finally got their own way? Why the change in the FCA stance?

These are good questions and ones that need to be answered. Critics of the deadline point out that as yet, there are 60% of PPI compensation claims yet to be made which suggests that either people don't know they have PPI or they don't know how to claim.

Changes at the top

The FCA came into being after it became apparent that its predecessor, the Financial Services Authority (FSA) was not powerful enough to control the banks. The FSA could only suggest or recommend changes; it had no enforcing powers.

When the FCA came into being a few years ago, its then head was a staunch critic of the banks and their power, as well as their attitude that they can and could do anything they wanted.

Martin Wheatley has a combative approach to the banks and lenders and was quite clear in what needed to happen.

But, as the PPI compensation saga ran on and on, with the rate of PPI claims being submitted showing no signs of slowing, people started to question when it was going to end.

Martin Wheatley was replaced as the head of the FCA and the mood has been different. Although the FCA say that as a body, they are not bowing to pressure from the banks and lenders, they recognise that the PPI compensation saga is undermining the British banking industry.

But, say critics, this situation was brought on by the banks themselves and not the customer.

What it means for customers

For customers who have yet to make a claim for PPI compensation, the PPI deadline set for August 2019 is a clear red flag: make your claim by this time, or miss out on claiming your money back.

The FCA has promised that they will mount a robust consumer campaign so that customers are aware of the deadline, how to claim, what to look for and so on.

There has been a report published recently that suggests although people do know about PPI, they don't think they are entitled to claim - and it is this group of people who need to be reached with the campaign!

Do you have a claim for PPI compensation? Call Payment Protection Scotland today for a no obligation chat.

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