After years of constant complaints, claims and compensations, the Financial Conduct Authority (FCA) started backing calls by the commercial banks to introduce a two year long cut-off for making PPI claims. After a lot of discussions and debates, FCA announced a final deadline for making claims related to mis-sold PPI, which is 29th August 2019.
According to Andrew Bailey, the Chief Executive of FCA, having a deadline will wake people up from the sluggish approach towards their claims. Without a deadline in place, the buyers tend to get casual and avoid approaching the institutions quickly. This deadline would prompt people to take action and check if they have any mis-sold PPI that they are not aware about. However, it is important to know that the deadline will not be applicable to everyone. Following are the areas where it will not be applied:
- If the buyer has purchased the policy after 29th August 2017
- Buyers who are holders of a 'live' PPI policy and they have been rejected from making a claim because of selling of the policy – such as the policy exclusions.
Also, the deadline applies to the Financial Ombudsman Services (FOS) and not the Court proceedings. Thus, the lenders and the offending financial institutions like banks and credit card companies will experience a hard time over the next two years. It is projected that the deadline along with the new Plevin guidelines will make people more active. Those who haven't checked for the policy would start checking if they have been mis-sold, and the ones who are already mis-sold the policy would start making claims immediately. Also, the lenders will be required to look for the possible victims and inform them about the chances of having a mis-sold PPI policy. They are also required to get back to the claimants who were previously rejected to make sure there is no error or further room for doubt. This would make sure that almost everyone having a PPI policy is able to make claims and get the compensation they rightly deserve.
Hence, in the next two years before we reach the deadline for making PPI claims, all the authorities will make sure that ignorant PPI policyholders will check their policies and the affected take quick actions to get their claims. This may solve a decade long issue and struggle of claiming PPI refund and would clear the matter from all records – be it the offender or the offended.