The Financial Conduct Authority (FCA) has published a progress report into the impact of its campaign to alert consumers to the payment protection insurance (PPI) claims deadline. The report covers the first 10 months of the 24-month campaign, i.e. the period from August 2017 to June 2018.

The FCA reports that, during this period:

  • 73% of consumers aged 25 or over say they recognise the FCA’s campaign
  • 82% say it is clear from the campaign that people need to make a decision about whether to claim
  • 68% are aware of the existence of a deadline, up from 53% pre-campaign; however the proportion understanding what the deadline means fell from 29% to 23%
  • More than two million people have visited the PPI pages on the FCA website
  • 4 million people have checked whether they had PPI, up 40% compared to the 10 months prior to the campaign
  • 7 million PPI complaints were made, up 63% on the previous 10 months
  • £3.7 billion of redress has been paid, up by 64%
  • 55% of the complaints were made direct to the provider, as opposed to via a claims management company

The FCA also reports that 75% of PPI mis-selling complaints are being upheld, as are 66% of those that relate to the Plevin judgement on undisclosed commission. To date in 2018, mis-selling compensation has averaged £2,001 per claim and Plevin compensation £1,191.

Firms that sold PPI have been praised for:

  • Improving the PPI information on their websites
  • Making it easier for consumers to check whether they had PPI with the firm
  • Improving support for vulnerable consumers
  • Contacting 1.3 million previous claimants to highlight that they may be able to make a new complaint due to the Plevin ruling
  • Reduced uphold rates at the Financial Ombudsman Service

However, the regulator still urges these firms to:

  • Provide improved training material for case handlers
  • Improve the contact information on their PPI webpages, particularly with regard to telephone support

With another 10 months to the final claims deadline of August 29 2018, the FCA says its efforts for the remainder of the campaign will “focus will be on strengthening consumers’ understanding of what to do before the deadline and how to make a PPI complaint.” It says its main aim to date “was to establish awareness of the deadline, and improve understanding of PPI and of how to check if you had PPI.”

Jonathan Davidson, Executive Director of Supervision – Retail and Authorisations at the FCA, said:

“We are encouraged by the results of the first 10 months of the campaign. However, with less than a year until the deadline, we will carry on working hard to ensure every consumer has had the chance to make a decision on whether to complain about PPI. Since 2011 more than £30bn in redress has been received by consumers.

“Where we have seen firms failing to meet the standards we expect, we have challenged them to make improvements.”

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article