Citizens Advice has responded to the Financial Conduct Authority (FCA) announcement that it will consult on a possible 2018 deadline for PPI compensation claims.
10 years ago Citizens Advice launched a super-complaint into the PPI scandal and has subsequently dealt with over 90,000 PPI issues.
“The PPI scandal reached pandemic proportions and it’s still not fully resolved,” said Gillian Guy, chief executive of Citizens Advice.
“If a deadline is enforced the FCA must make sure there is a renewed effort to alert possible victims and that banks work hard to solve outstanding issues. Banks initially dragged their feet in compensating consumers so it is important any deadline doesn’t give them a similar opportunity to slowly respond to customers.
“As PPI shows, it’s absolutely crucial people can get independent help and guidance around financial matters when they need it. Any of the provision banks have made for PPI that has not been claimed beyond the deadline should be re-invested into free money and debt advice.
“On top of the abuse caused by PPI, we are concerned at the sums of money claims management companies are making, sometimes taking 40 per cent of customers’ compensation. It is time the Government cracked down on this by introducing a cap on fees, but also by providing support to the free advice sector to help consumers avoid costly fees.”
