Final PPI claim deadline pushed back even further

Posted by Ben Tumilty in Banking on 4 January 2017 - Ben is a Credit Analyst at checkmyfile

Let’s be honest, we almost all know someone who has claimed for PPI. You may have even done it yourself. If you aren’t aware of anyone you know claiming for PPI, you would still know of its existence, as the adverts for claims firms seem to populate every TV channel and radio station with advertising space.

If you have paid attention to these – and to be fair, nobody would blame you for tuning out – you might also be aware that there is to be a final claim deadline, currently rumoured to be the middle of 2019, as this is what the Financial Conduct Authority (FCA) has said it was considering.

The industry was expecting the FCA’s decision on this to be made by the end of 2016, but the regulatory has received “a large amount of feedback” in response to their proposal, and as such has had to push this back. It now says it would decide on the deadline within the first quarter of next year. Consequently, those in the industry expect the deadline to be pushed back by a similar timeframe from mid-2019.

A spokesperson for the FCA said about the originally rumoured deadline, “This was subject to a number of variables including the extent and nature of the feedback received in response to the consultation. We committed to issue an update if we were likely to depart from the proposed dates.”

The deadline discussion comes as the Financial Ombudsman Service (FOS) is expecting record PPI queries in 2017. The Ombudsman resolves PPI complaints from consumers when they and their lenders reach deadlock in their disputes, and says that it has received a total of 1.6m PPI complaints so far.

By the end of the 2016-17 financial year, the FOS expects to have resolved more than 170,000 PPI complaints – and based on their plans and budget they expect the number to double for the 2017-18 period, no doubt as a consequence of the looming deadline.

As of October, the PPI bill sat at more than £40bn – and with the expected increase in PPI complaints, this is no doubt set to increase further.

Many adverts will suggest that claiming PPI is complex. The truth is far from this. We would always recommend that you contact the original lender with any dispute that you have and the same principle applies for a PPI complaint – most of the major lenders have their own complaints process clearly defined on their websites, which will explain how to raise your dispute.

Your next step in the dispute would be the Financial Ombudsman Service – more advice on how to claim PPI, as well as contact details for a number of lenders, can be found on their dedicated PPI webpage, http://www.financial-ombudsman.org.uk/contact/PPI.html.

There is no need to use a 'Claim Management Company' or any other third party – they will charge you a substantial proportion of the compensation awarded (typically around 20-30%).

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