Banks Want A Deadline
The Financial Services Authority admitted that there are ongoing talks between the agency and UK banks about setting a deadline for filing claims for compensation for mis-sold Payment Protection insurance (PPI) policies in Scotland and other parts of the UK. The banking industry lobbies for April 2014 as the deadline for filing claims.
In response to the request of the banks, the FSA says it will look into the suggestion and carefully study whether it will benefit the customers. The FSA stressed that its goal was to ensure that consumers are protected. As such, the FSA Board wants to evaluate the proposals and be convinced that the terms favor the consumers. The FSA may consider proposals if they can guarantee that more consumers will get compensation more quickly. While there have been initial discussions between the banks and the regulator, the agency assured the consumers that there will be public consultation before any new policy will be enforced.
As of date, banks have apportioned more than £13 billion for paying PPI claims.
In connection with a deal being forged by the British Bankers Association (BBA) with the FSA, BBA has offered to fund major advertising campaigns that will inform consumers about their rights to complain. The FSA is very cautious when it comes to such deals.
The ruling by the High Court has caused a deluge of complaints in the banking industry. Hundreds of thousands of PPI claims are filed on banks which are set to become the largest compensation bill that any sector of the financial services industry will pay for.
The FSA assures that all consumers who have been mis-sold with Payment Protection in Scotland would receive rightful compensation. But the banks are proving incompetent at handling these complaints.
The Financial Ombudsman Service (FOS) – the agency that handles complains about unresolved PPI claims – has added more than 1,000 staff to address the growing number of disgruntled bank customers. The FOS anticipates another 245,000 new PPI complaints this coming financial year.
At present, it is estimated that more than 2.5 million customers have already been awarded claims for mis-sold PPI policies which were supposedly intended to help them pay loans such as credit cards and mortgages in case they lost their income due to illness or unemployment. If the trend continues, millions are expected to file claims within this year.
In a recent development, the British Banking Association has proposed that a deadline be set for filing of new claims. UK banks lobbies for April 2014 as the deadline for PPI claims. The proposal comes with the condition that the banks will fund major publicity campaign starting in April 2013 to alert customers about their rights. However, the FSA maintains its key priority which is to guarantee that all customers will rightfully receive their compensation.
Meanwhile, customers can work with a claims management company that specializes in reclaiming Payment Protection in Scotland. These companies ensure that customers receive their full compensation for years of paying their PPI policies.
ScottishClaims.co.uk is a leading PPI claims company that can help you deal with your bank. Visit our website to learn more about how we can help you.
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