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£70bn PPI redress still to repay – an independent survey reveals awareness

Much has been written about the Financial Conduct Authority [FCA] Payment Protection Insurance [PPI] complaint deadline since the claim guillotine was announced. The deadline was always short, but the time available to submit a claim is fast disappearing – it won’t be long before less than 12 months are left to claim.

What are the updated views of consumers?

The PFCA is concerned that consumers, particularly those who are blind to the fact that they may have had PPI linked to their financial products, will miss out on the potential compensation they might be entitled to. As a result of our concerns, we are committed to testing the views of UK adults on a regular basis. Populus, an independent research provider, has recently provided an up to date analysis. The timing is interesting and useful as the FCA has for a number of weeks, been re-running its ‘Arnie PPI deadline awareness adverts’. The important question is, do these adverts change minds and support the ‘Arnie’ call to ‘do it now’?

In our view, they do not. There is also no doubt the PPI deadline should be reviewed as 43% of consumers surveyed believe it should be extended to cover an agreed financial amount; it must be considered to avoid the banks short-changing them. An agreed total amount as referred to by commentators is £100bn to include gross premiums and interest. Only £30bn to date has been repaid.

So what do the current results show?

  • Nearly half of those surveyed (46%) don’t know for sure if they have been mis-sold PPI. These are the group of people the PFCA believes will miss out if the FCA deadline is not reconsidered.
  • Despite the new wave of FCA advertising, 45% of those surveyed do not know about the PPI deadline or when it is. This just shows that the comic approach to such an important issue was mis-guided.
  • 43% of those surveyed already feel the deadline should be extended until the banks have repaid consumers an agreed total amount. So it is not just the PFCA that care about access to justice. Consumers demand fair treatment too.
  • 66% of those surveyed feel consumers should have the option of professional help.

So the authority behind the deadline decision is already being questioned, but will the voice of the people be heard?

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