The PPI claims industry is one of the most competitive industries in the UK, with just over 2000 claims management companies (CMCs) registered to trade. Such competition breeds innovative marketing techniques and unfortunately, the odd infringement of Advertising Standards regulations.
Take the ubiquitous PPI claims adverts and in particular the ones telling you to ‘start your claim before the deadline’ or the classic ‘time is running out to start your claim’. Whether it was a PPI calculator company like www.ppicalculatoronline.co.uk or an ASU refund firm, these were the staple slogans. The truth is, time was never running out to claim back payment protection insurance premiums, it was simply a tactic playing on the fact that the banks had requested a deadline from the Financial Conduct Authority (FCA).
‘PPI redress is working well’
There still isn’t a deadline to make a claim, despite another attempt by lenders to get one put in place, but it seems the TV ads may have contained a modicome of truth. According to Clive Adamson, director of supervision at the FCA, the PPI mis selling scandal is entering its “final stages” thanks to improved compensation services and new protection for financial consumers.
In a 28page FCA thematic review, Adamson said: “The process for consumers to claim PPI redress is working well, and that the PPI issue is now entering what we believe to be its final stages.” He added: “Firms have now handled over 13m PPI complaints, and customers have received over £16bn in redress so far making it already the largest financial services redress exercise ever undertaken in the UK.”
Twothirds of premiums yet to be claimed
Adamson believes that the regulator and the banks have broken the back of the misselling scandal, and his opinion is backed up by some recent figures from the Financial Ombudsman (FOS). The ombudsman recently announced that PPI complaints were down 50% yearonyear, from 12,000 a week in 2013 to 5,000 a week in the first six months of 2014.
The figures may suggest that PPI complaints are slowing down but there’s still a lot of compensation still to come. According to the FCA report, around 45m PPI policies were sold between 1990 and 2010, worth an astonishing £44bn to the banks. When you consider that only £16bn has been refunded so far 64% of PPI premiums are yet to be claimed back.