The PPI scandal shows no sign of going away. After a supreme court decision last year decided that if a PPI seller neglected to advise the consumer that they had been paid a commission from the products provider that the sale was unfair and mis-sold.
Susan Plevin, a 59 year old college lecturer, and the subsequent court judgement, has opened up a fresh wave of new complaints.
The FCA is considering whether additional rules and/or guidance are required to deal with the impact of the Plevin decision on complaints about PPI
The Financial Conduct Authority (FCA) is seriously considering imposing a deadline for any new mis-sold PPI claims.
Directors are to hold a board meeting on Thursday to discuss whether the new time-bar can be introduced.
Banks have set aside upwards of £30bn since the scandal first broke in 2010, to compensate customers who were sold PPI on financial products that were neither required or nor needed.
The banks now face the very real possibility of spending much higher sums on PPI compensation claims.
The FOS has expanded from 100 staff at its foundation in 2006 to more than 4,000 to deal with the deluge of PPI complaints from customers unhappy with the product or their bank’s redress process
“The FCA is considering whether additional rules and/or guidance are required to deal with the impact of the Plevin decision on complaints about PPI,” the City regulator said in May.
“The FCA will be engaging with relevant stakeholders in the coming months in respect of this and it expects to announce its views on this, including next steps, at the same time as existing work.”
The FCA already warned earlier this year that they would seek to impose a time limit on PPI complaints.
It said it would gather evidence on “whether the current approach is continuing to meet its objectives of securing appropriate protection for consumers and enhancing the integrity of the UK’s financial system”.
The Financial Ombudsman said last month that although new cases have slowed by 10% to 94,091 in the first six months of this year, the scandal still continues to generate a steady amount of complaints.
With the Plevin court ruling, we could see steady quickly escalate to the numbers of 2010. If you have been previously advised you were not mis-sold, now is the time to act!
Have you ever claimed PPI compensation?
He is also a contributor to Clear Debt, ICOUNT Money and M1 Debt Advice blogs discussing all things personal finance.