The PPI (Payment Protection Insurance) compensation amount by various banks have risen to more than £27 billion and it is going to increase as FCA has launched a consumer communication campaign this August.
The FCA (Financial Conduct Authority) has set a deadline of August 29, 2019,to claim PPI compensation by those who were mis-sold PPI in the past. According to a City A.M report, the FCA is going to spend £42.2 million on an ad campaign or consumer communication campaign to make people aware and claim PPI compensation.
In the month of May 2017, the payouts to consumers who have filed a PPI compensation claim amounted to £260 million. This is considered to be the highest amount since June 2016. According to a report by “The Times”, banks are likely to spend £500 million to compensate for newer claims till the deadline of 2019. It is expected that more people will claim PPI compensation after this awareness campaign.
Claims Management Company “We Fight Any Claims” challenged FCA that the deadline of 2019 would not be enough and it should be extended to settle the claims. According to “City A.M.” the High Court rejected this legal challenge by “We Fight Any Claims”.
The FCA Chief Executive Andrew Bailey announcedin March, “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”.