AM Online

Consultation begins over proposed deadline for PPI complaints

The Financial Conduct Authority has begun consultation on changes to PPI complaint handling rules.

In a statement published on October 2, the Financial Conduct Authority (FCA) stated that it would consult on introducing a deadline for making payment protection insurance (PPI) complaints in an attempt to “bring the PPI issue to an orderly conclusion”.

The consultation would also include consideration of a consumer communications campaign and new rules and guidance for handling PPI complaints in light of the Supreme Court’s decision in Plevin v Paragon Personal Finance Ltd.

The FCA has now published its consultation paper on the proposals, setting out the full detail of the proposed new rules and guidance, the evidence considered, the reasons for proposing them, and an assessment of their costs and benefits.

The consultation paper also outlines the proposed consumer communication campaign and how it is proposed this be funded. 

Those with views on the proposals set out in the consultation paper have three months to respond. Any comments on, or evidence about, the proposals should be sent to the FCA by February 26 next year.

The FCA’s consultation paper gives a proposed deadline for PPI complaints of sometime in 2018, two years after the anticipated announcement of the plan next year.

It also suggests that a communications campaign to make consumers aware of the changes would cost an estimated £42.2m over two years. This sum would be paid for by 18 firms who collectively receive around 90% of PPI complaints.

In the meantime consumers unhappy about PPI should continue to complain to the firms concerned and to the Financial Ombudsman Service if they are not satisfied with the response.

A spokesman for the FCA said: “Making such complaints is free to consumers and most people should not need to use a claims management company to assist them.

“Consumers who intend to complain about PPI should do so as soon as possible.”



Click here for finance and insurance best practice and procurement insight

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.