UK FCA sets August 2019 deadline for PPI complaints
The UK Financial Conduct Authority (FCA) set a deadline of 29 August 2019 for customers to make new payment protection insurance (PPI) complaints.
The deadline does not apply to the PPI policies sold after 29 August 2017.
The FCA will also launch a consumer communications campaign in August this year. It will run for two years to help consumers with their decision making on PPI prior to the deadline.
FCA chief executive Andrew Bailey said: “Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off.
"We believe that two years is a reasonable time for consumers to decide whether they wish to make a complaint.
“We have carefully considered the feedback we received and we still believe that introducing a deadline for PPI complaints and a communications campaign warning of the deadline will benefit consumers.”
The regulator stated that after taking consideration of the Supreme Court judgment in the Plevin v Paragon Personal Finance case, it has furnished final rules and guidance on how companies should tackle complaints from consumers.
For handling PPI complaints, the FCA proposed a tipping point of 50% commission at which companies should presume that the failure to reveal commission led to an unfair relationship.
The excess commission surpassing the 50% tipping point will be calculated as redress, said the FCA. Further, the FCA wants all companies to inform previously rejected complainants who are eligible post Plevin judgment about the new grounds for complaining to them.
As per the regulator, consumers having live PPI policies can complain even after the new PPI deadline provided they have a future claim on their policy turned down for sale-related reasons.
Image: FCA has announced 29 August 2019 as deadline for PPI complaints. Photo: courtesy of everydayplus/Freedigitalphotos.net.