PPI and the FCA

The FCA PPI deadline campaign is in full swing. Do you know what the role of the FCA is and how to make a claim?

The PPI deadline is looming, as consumers rush to make their claims before 29th August 2019. It’s been over a decade since the mis-selling scandal came to light, as we discovered millions of customers were sold PPI policies when they didn’t need them.

PPI was frequently sold alongside credit cards, mortgages and loans, but only a few wanted the insurance. Many people were told that it was compulsory or did not have the full terms and conditions explained to them. Many bank employees felt pressured to sell PPI and had bonuses attached to their sales.

The Financial Conduct Authority (FCA) wants to bring an end to the PPI scandal. As it urges consumers to make a claim, we explain its role in the PPI scandal and how to make a claim.

The Role of the FCA and PPI

The FCA was created in 2013 after the Financial Services Authority (FSA) was restructured. The FSA was abolished and, in turn, the FCA and Prudential Regulation Authority emerged in its place.

The role of the FCA is to regulate financial services and businesses to ensure they are working effectively and fairly. Given the important role of the financial sector within the economy, it plays a vital role. The FCA is funded by the businesses it regulates and is accountable to the Treasury.

In 2005, the FSA investigated PPI and begin fining the banks for how they mis-sold the insurance. In May 2009, the FSA banned the sale of single premium PPI. In 2011, a high court ruling ordered the banks to contact customers regarding compensation.

FCA PPI office

The FCA PPI Deadline Campaign

There were rumours of the FCA creating a PPI deadline for many years, but in August 2017, it announced that consumers had two years to make a claim.

As part of the FCA PPI deadline, it created a promotional campaign to make sure every consumer is aware of the date. A dedicated website, social media page and hotline were created for people to learn how to make a claim. The information is providing people with details about the banks and lenders, as well as informing consumers on how PPI was mis-sold.

Using funding from the banks involved in the mis-selling scandal, the advertising campaign cost a total of £42 million. This included the hiring of famous Austrian-American actor Arnold Schwarzenegger. Television, radio advertisements and posters can be seen across the UK to promote the deadline.

In January 2018, over £400 million was paid to customers — the highest monthly amount since March 2016. This figure demonstrates that the campaign is having an effect and achieving its goal of coaxing more people into making a claim. There is still a considerable amount of money owed to customers before the impending deadline, though, so more record monthly figures are expected.

How to Claim PPI Before the FCA PPI Deadline

At Direct PPI, we’re here to help you make your PPI claim. If you have any queries about making a claim or would like us to make a claim for you, we can. Don’t have any paperwork? No problem — we can find out if you had a PPI policy. If you do have your paperwork, you can start your claim today. Contact your bank or contact Direct PPI and we can do the hard work while you relax.

With over a decade of experience, we have made strong, successful cases for