Martin Lewis from MoneySaving Expert and Richard Lloyd, executive director of Which? have written to Tracey McDermott from the Financial Conduct Authority (FCA) to express ‘serious’ concern that the regulator is considering placing a time limit on PPI complaints.
The PPI scandal has been rumbling on since the start of 2011, and has resulted in millions of complaints for customers, and billions of pounds of compensation being paid. The majority of these cases have come from the large banks.
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In January, the FCA said it was considering placing a time limit on PPI claims.
In the letter Lewis and Lloyd said that such a move would be to the detriment of consumers and provide banks with an underserved resolution to an issue ‘entirely of their own making’.
Specifically, they pointed to the fact that no major bank has agreed to proactively contact all their customers known to have been mis-sold PPI.
The letter said that two banks had high upheld rates for PPI complaints escalated to the Ombudsman and have set aside substantial extra provisions for PPI mis-selling. "This suggests that they are far from finished dealing with the issue." The letter said.
Instead of calling time on PPI complaints, Lewis and Lloyd said the FCA should ‘redouble’ its efforts in ensuring all banks handled complaints quickly and properly.
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