PPI reclaiming deadline set for June 2019
Regulator, the Financial Conduct Authority (FCA), first mooted the idea of imposing a cut off on PPI claims last year.
Today it says it wants a rule setting out a PPI complaints deadline to come into force by the end of June 2017, with the cut off point for submitting claims falling two years after, at the end of June 2019.
The FCA will now consult on this proposal, with a decision expected by the end of December 2016.
Andrew Bailey, chief executive of the FCA, says: “Putting a deadline on PPI complaints will bring the issue to an orderly conclusion in a way that protects both consumers and market integrity.”
The FCA will also report back in December with its rules and guidance on handling PPI complaints in light of the Supreme Court judgment in the Plevin vs Paragon case. It expects these rules would then come into force by the end of March 2017.
The Plevin ruling in November 2014 held that claimant, Susan Plevin, was treated unfairly by her lender, Paragon Personal Finance Ltd, because she wasn't told about the large amount of commission that was taken from her PPI payment.
This case is a different challenge for the PPI industry to deal with, as PPI claims normally centre on the product being either mis-sold or unsuitable.
Been mis-sold PPI? Complain
If you think you’ve been mis-sold PPI, you first need to complain to your lender. If you don’t get a response within eight weeks, or you’re unhappy with the response you get, you can take your case to the free Financial Ombudsman Service.
Use our PPI template letter to help with your claim.
You do not need to pay a claims management company to submit a complaint for you; these will typically take about 25% of any redress you’re given.
Payment protection insurance is designed to cover you should you fall ill, have an accident or lose your job and can’t make repayments on loans or credit cards. However, research by consumer watchdogs found the cover to be overpriced, filled with exclusions (policies exclude self-employment, contract employees and pre-existing medical conditions) and were often mis-sold because the exclusions were never fully explained. In May 2011, the High Court ruled banks had knowingly mis-sold PPI and ordered them to compensate around two million consumers.
The practice of a dishonest salesperson misrepresenting or misleading an investor about the characteristics of a product or service. For example, selling a person with no dependants a whole-of-life policy. There have been notable mis-selling scandals in the past, including endowment policies tied to mortgages, employees persuaded to leave final salary pensions in favour of money purchase pensions (which paid large commissions to salespeople) and payment protection insurance. There is no legal definition of mis-selling; rather the Financial Services Authority (FSA) issues clarifying guidelines and hopes companies comply with them.
If you’ve have a complaint about a financial service product you have bought but the company you bought it from refuses to resolve your problem after eight weeks, the Ombudsman can help. The Ombudsman will investigate and resolve the matter. The Ombudsman is independent and its service is free to consumers. The Ombudsman may find in the company’s favour but consumers don’t have accept its decision and are always free to go to court instead. But if they do accept an Ombudsman’s decision, it is binding both on them and on the business.