Earlier this year, the Financial Conduct Authority (FCA) announced 29th August 2019 as the final date that consumers can make a payment protection insurance (PPI) claim. The promotion of the PPI deadline began in August, with a £42 million campaign.
PPI was mis-sold to thousands of customers in the UK during the 1990s and early-2000s. The insurance was sold with mortgages, loans, overdrafts, credit cards, store cards and catalogue cards. The banks have paid out astronomical amounts of money to consumers for their wrong-doings. Nearly £28 billion has already been paid to customers.
Companies offering PPI claims with the lowest fees have been helping people reclaim their money for years. With the deadline looming, now is the time to contact your bank or a trustworthy PPI claims company to make a claim. But, does this mean the PPI scandal is finally coming to an end?
Has the PPI Deadline Increased the Number of Claims?
The most recent statistics indicate that since the deadline was announced, people have taken note and acted upon it. Nearly 10,000 people have called the FCA’s PPI helpline and, during September this year, the PPI deadline website received 12,500 visitors a day.
The Financial Ombudsman (FOS) reported 8000 more complaints about PPI between July and September than between April and June. The FCA hasn’t announced how much money the banks have repaid since the deadline promotion, but it is likely that we will see a sharp increase in money paid out to match the surge in claims.
Will it All be Over After the PPI Deadline?
After the PPI deadline, there will be no more cold calls or texts from PPI claims companies. Nor will we see or hear Arnold Schwarzenegger’s robotic head telling us to “do it now!” We’ll finally begin to hear the end of the PPI scandal.
However, for those making a claim, it might not quite be over by August 2019. If a consumer decides to refer the case to the FOS, this could take up to two years to be resolved.
As well as dealing with the backlog of complaints, the FOS will continue to resolve PPI complaints long after the PPI deadline. This is because PPI policies are still being sold. Anybody who currently has a PPI policy can make a PPI claim after the deadline if they feel it was mis-sold to them. There is no doubt that the banks have changed how they sell PPI. But, if a consumer wants to make a claim, the option is still there after August 2019.
Have the Banks Learnt Their Lesson?
The banks have paid out huge sums of money both to consumers and fines for mis-sold PPI. They have no doubt learnt from their mistakes. Yet, many critics are dubious and feel that another PPI scandal will emerge. For example, Barclays have been involved in numerous scandals over the past ten years, being fined by both the UK and US.
Banks all over the world are dealing with scandals. Wells Fargo in the USA created accounts without customers’ consent. Other banks had large, competitive bonuses attached for selling the most products.
These scandals certainly make us question the ethics of banks. Unfortunately, using their services is inevitable for those of us who earn a living and want to save some money in a safe and secure way. But, can we trust that it’s safe and secure? Should we worry every time we’re offered a new product? We can only hope that the long-awaited PPI deadline makes banks think twice before misselling any other products to consumers.