The watchdog that looks into complaints about the selling and in the case of PPI the mis-selling of UK Insurance policies is considering imposing a time limit on complaints been acted upon. If that does happen it will end one of the biggest financial scandals in British history. Banks were making it difficult for people to refuse taking out credit cards, loans, or mortgages without getting PPI as well.
The thing with PPI policies were that were sold to people that would have refused pay outs had they wanted to claim against their policies in the event of losing their jobs, or becoming too ill to work. When people were allowed to complain about the PPI policies it led to millions of complaints against the banks.
The FCA has estimated that so far that lenders have already paid out £17.3 billion in compensation. It also calculated that the main high street banks have set £24 billion to settle the claims made against them.
No doubt the banks and other financial institutions would be relieved if there was a cut off point for complaints to be received against them.
At one point charging customers PPI made the banks a great deal of money, now it has cost them a whole lot more to compensate customers whose complaints about being mis-sold PPI have been upheld in court, or settled outside of court by the banks. So far of the claims that have been settled 70% have led to compensation payments to the customers that complained.
The FCA has been paying close attention to how the complaints about PPI policies have been progressing.
It noted that since 2011, over 12 million complaints had been made against financial providers and 70% had been given compensation. The banks were still having to deal with millions of complaints every year. Although the the number of complaints had decreased in the last three months of 2014 there were still over 4000 complaints every week.
In a statement the FCA said that it was reviewing the whole issue of PPI claims and it did not rule out setting a deadline after which no more complaints could be made.
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