Dear LPG readers,

I did write to LPG about aspects of PPI over a year ago and I know that it is a bit late in the day now but, last week, I got to thinking about this PPI deadline again.  We all know when it is but suddenly I felt the need to really understand why there is a deadline.

My thinking is that this aspect of insurance was found to be wrongly sold to many people, by the establishment some ten years ago now and it was then that the flood gates were opened.  The public were encouraged to claim and all these agency representatives started the practise of continually phoning to offer consumers their ‘no win no fee’ services which have annoyed us all. I also remember when, two years ago, the head of Arnold Schwarzenegger started shouting at us in TV adverts about the deadline. 

I heard the words but I have to say that I had no idea what it really was until an insurance I had did not cover my mortgage at a time when I needed it to, and I am sure that a lot of people learned exactly what it was all about because something similar happened to them.  The thing that I have recently started to wonder about is what happens after the August 29th deadline. 

I am sure that there are going to be lots of people who discover that they are affected in months and years to come, so I telephoned the FCA and asked a couple of questions.  The first was ‘why is there a deadline?’

 I was told that it was found that consumers were ‘putting off’ making complaints and consequently the FCA had gone through the accepted rigorous consultation process and agreed the deadline.  They said that it is generally accepted and is normal practice with all such complaints that there is usually a deadline put in place and those complaints become what is referred to as ‘time-barred’. 

For everything that they told me it sounded as if they gave people two years to find all their PPI and claim it, because to me, the short version sounded like the companies concerned, not to mention the FCA , obviously felt that they have spent enough time and effort on this and want to be officially done with the whole thing.  In short it sounds as if they are fed up with sorting it and need a get-out clause. 

The FCA told me that the banks and insurance companies who had done the miss-selling had an obligation to send letters to, and notify their clients who were ‘at risk’ of being affected; although I missed the part where they had an obligation to make sure that all their clients get their money back.  Surely the companies know who is affected and who is not from their records.

I then asked what happens to the money that is still owed and never claimed because it sounded to me as if the insurance companies and banks concerned get to keep it.

They did tell me that no matter what the complaint, or when a consumer discovers that they have cause for a claim against a company, they will still be able to make a complaint although it is only likely to be taken seriously in exceptional circumstances; which left me wondering what an exceptional circumstance is… I would think a person who lives on a small pension would not find getting £200.00 back pretty exceptional.

I still don’t really understand the whole thing, but my telephone call to the FCA did make things slightly clearer, so if you really want to know more than their consumer advice telephone number is 0333 252 2979.  The deadline is about picking up the phone and making the initial claim; not having it settled.

KE, New Cross

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