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Is the PPI Campaign Working?

When the news leaked that the FCA had started to spend part of their £42 million budget on the creation of a hard-hitting, leave-no-stone-unturned marketing campaign to encourage consumers to make a claim for PPI compensation, not many people were convinced that it would work. But the FCA has persevered. Is the message getting through about making a PPI compensation claim before August 2019?

Campaign

Wide-scale consumer campaign

The FCA has paid the advertising agency giant M&C Saatchi around half a million pounds as part of their plans to implement the PPI August 2019 compensation deadline.

The FCA promised a promotional and communications campaign to encourage people with genuine PPI compensation claims to claim their money back, a key component of introducing the deadline, a move that was unpopular with some consumer groups.

The total cost of the communications campaign is thought to be around £42 million and the initial payment to Saatchi is for "campaign strategy and creative development work undertaken". In other words, it set the parameters and the basis for a future promotions campaign.

It is understood that the FCA has engaged the services of advertising agency Manning Gottlieb to create the actual adverts and campaign but are the adverts working?

How is the project being funded?

The FCA has been at pains since its creation as part of industry-wide changes since the PPI mis-selling scandal, to hold the banks and lenders to account.

The budget for the advertising campaign is thought to be coming from a levy on 18 firms that have reported over 100,000 PPI complains about advising, selling and arranging PPI from 1 August 2005 to 1 August 2015.

When will the campaign start?

Although banks favoured a 2018 deadline, the FCA was not to be rushed and the August 2019 was decided on.

The PPI campaign was due to begin around June 2017, tying in with the two-year 'notice window' that consumers must be given as part of setting a firm deadline.

In December 2015, the FCA announced that it had received a large volume of responses to its original proposals around PPI and thus, many people think, it pushed back the date from spring 2019 to late August 2019, a move that irritated the banks.

Still a big problem

PPI compensation claims are increasing. The FCA publish monthly PPI figures and since the deadline was announced, more claims are being made. But there is still a possibility that a tsunami of PPI compensation claims could happen in the weeks up to the deadline.

The Financial Services Ombudsman is also still working hard on PPI complaints, with around a third of their annual workload being PPI cases.

Do you have a claim for PPI compensation? Find out today with Payment Protection Scotland.

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