The Financial Conduct Authority’s PPI deadline, viewed by consumer groups as unprecedented and unnecessary and seen as a solution to urge consumers to make a PPI claim, is likely to be useless. Almost every country in the world has in its constitution a consumer protection clause that would require banks and other financial institutions to refund consumers mis-sold payment protection insurance.
Consumers may only lose state support for the resolution of the UK’s PPI crisis but their legal rights still require banks and financial institutions to respect their claim and give it proper evaluation. The Financial Ombudsman Service, mediating issues between consumers and financial institutions, will still honour any PPI claim that passes through their organisation.
The PPI claims deadline is set for August 19, 2019 and the FCA intends to use a “consumer communications network” to encourage consumers to make a PPI claim. FCA Chief Andrew Bailey believes the PSA could help urge consumers to make a complaint, as without a deadline, consumers are likely to put off their plans to make a claim.
Consumer groups have voiced their opinion negatively on PPI with most saying the banking industry had yet to make strides in improving their PPI policy evaluation process to properly recompense their consumers. Most also said the FCA had not defended the consumer’s rights but more the rights of banks instead.