PPI time limit – Our perspective

The Financial Conduct Authority (FCA) is to publish a report into the huge PPI mis-selling scandal next month.

There are some rumours that after years of bullying and cajoling by UK banks, the FCA will cave and introduce a PPI time limit of when claims can be made.

We are hopeful the FCA will see sense and not introduce a PPI time limit, but are aware of the FCA’s previous bowing to the bullying of the banks.

Unfair to consumers

Let’s just put this into perspective shall we….the banks want a PPI time limit that would only benefit them, for their own wrongdoings and downright cheating.

Hmmm yeah that sounds fair doesn’t it!

Please let’s not underestimate the FCA’s weakness when it comes to dealing with giant corporations.

Many of the staff within the FCA and the banks have worked for each other, and will move around in the same circles in the future.

The FCA is there to protect consumers, and we call on them not to lose that focus.

Our first argument

Our argument is based in three parts really, and we shall briefly explain our reasons why we believe it would be unjust for a PPI time limit to be brought in.

Our first issue is that UK banks and lenders have STILL made huge profits from the PPI mis-selling scandal, despite paying out tens of billions to date.

This simply cannot be right, where is the incentive to not commit similar offences in the future?

Our second argument

The FCA and Financial Ombudsman Service (FOS) already have time-barring rules in place when dealing with complaints.

These are generally known in the industry as the 6/3 rule, and basically mean a complaint can be looked into so long as it is raised either:

• 6 years from the date of the sale of the policy or…
• 3 years from when the consumer became aware they may have reason to complain

Our focus really is on the 3 year ruling in this instance.

We estimated approximately 7 million people have yet to raise a claim, and a huge number of these people are unaware they’ve been sold a PPI policy.

Banks and lenders used various tactics when selling PPI, and one of the main tactics was to add the PPI without the knowledge of the customer.

So, if the customer isn’t aware they’ve had a PPI policy how can the 3 year rule start until such time as they are made aware they’ve had it?

Our final argument

Banks continue to deal with complaints unfairly, rejecting millions of valid claims.

This is proven by statistics released by the FOS which still show the majority of rejected claims escalated are overturned.

Furthermore, fines are STILL being handed out to banks and lenders for their failures in how they handle complaints.

Surely until complaints are handled fairly we cannot contemplate bringing in a PPI time limit.

How a deadline could work

We are not opposed to a PPI time limit but we strongly believe certain criteria must be met in order for a time limit to be introduced.

Firstly banks and lenders must contact every customer they’ve sold a policy to who haven’t yet claimed.

This would then set the three year period into play, as per FCA and FOS rules.

If a customer has moved address a bank/lender must use all reasonable endeavours to locate and inform the customer.

This, in our opinion, is the fairest way to bring this huge mis-selling scandal to a reasonable conclusion.

Have you had PPI?

PPI was sold on all forms of credit, such as mortgages, loans, car finance, hire purchase agreements, credit cards and store cards.

Not sure whether you’ve been sold PPI?

Our fast and comprehensive checking systems that have been set up with almost all banks allows us to find out whether you’ve been one of the millions who have had PPI.

Not sure whether you qualify? Check here to see whether you may.

Our average successful customer award is £3,332**!

Want to know how much you may be owed? Why not try our PPI calculator.

Making a PPI Claim

Option #1: Fill in the ‘Start Your Claim’ form on this page. We’ll send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we provide, we’ll make a start on your PPI claim.

Option #2: Click the ‘Download Claim Pack’ button. Simply print out the form, complete it and send it back to us. Our address and email address can be found here.

Our experts are on hand to answer any questions you have via telephone, email or our live chat facility.

So….why wait, let’s get started!

Banks call for PPI time limit