The new rules would not come in before spring 2016, so consumers will have until at least spring 2018 to complain. Under the proposals financial service providers will foot the bill for this campaign.
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Remind me of the background to all this?
“With the onus seemingly placed on the consumer to complain, within a fixed deadline, this should greatly reduce the redress risk associated with Plevin, in our view”, the analysts said.
It could be that not all of these areas of supervision are applicable to you; however, I would strongly encourage you to consult the handbook to find out if you are affected and what you need to do in order to ensure you’re not in breach of any requirements.
So is this the beginning of the end for the scandal?
‘In the long-term, the deadline will allow banks to move on, reduce provisions and plan for the future’.
However, we could be heading for a fresh round of payouts totalling billions of pounds following a court ruling.
In the course of the most recent five years banks have effectively put aside more than 28 billion pounds ($42 billion) to meet remuneration claims from clients sold installment assurance protection (PPI) approaches.
The proposed deadline of July 18 would also apply to the handling of these complaints – about where the level of commission was not disclosed.
Will this mean an end to those annoying calls and texts from claims firms?
Claims companies, which have made a fortune by helping people reclaim PPI even though it is easily done online, will no doubt be the big losers from this deadline.
Sales of annuities have dropped sharply and more than 200,000 Britons have accessed their pension cash since the freedoms were introduced in April, according to FCA figures.
Don’t use a claims firm.
“These firms have a poor reputation, especially over rip-off fees for PPI claims, and our advice is to avoid them”.
What was the reaction to the deadline announcement?
Various industry stakeholders have warned that a “more fundamental look” at retirement communications is needed, following the Financial Conduct Authority’s publication of its post-pension freedoms consultation.
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While banks will applaud an early ending to the scandal – and consumer groups will be angry at people’s right to compensation being time-limited – the high street giants will be waiting nervously for the FCA’s ruling on the so-called Plevin judgment.
