4:14 pm, March 2, 2017
THE Financial Conduct Authority is introducing a deadline for people to make new payment protection insurance (PPI) complaints.
However, the National Franchise Dealers Association (NFDA), while supporting the announcement, has predicted that this will result in an increase in claims in the short term.
The final deadline for making a new PPI complaint will be August 29, 2019. To encourage consumers to decide whether to act about PPI before the deadline, the FCA will run a two-year consumer communications campaign, which will be launched in August this year.
Andrew Bailey, chief executive of the FCA, 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.’
The NFDA has issued its support for this PPI deadline, stating that it will give certainty to dealers.
Sue Robinson, director of the NFDA, commented: ‘We expect claims management companies to actively solicit customers to make claims over the next two years and we urge dealers to fully investigate any complaints they receive to check their validity.
‘The number of claims is likely to increase in the short term, but recent experience suggests that the quality and quantity of these have been falling.
‘Dealers have been facing significant administrative burdens and costs for PPI claims and we believe the deadline will put an end to the uncertainty previously caused.’
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