The complaints for claiming PPI refund have been pouring in for years now. It all started when people started realising that they have either purchased PPI without them being told about it (along with their loan/credit) or they have not been told certain clauses which are important for them to know. This unfolded into one of the greatest and the most expensive scams this country has ever seen. More and more people started to check their documents to see if they have been mis-sold the policy.
As the days passed, the number of claims started increasing. New claims started coming up every single day, that too in thousands! It soon started gaining momentum, which made the media cover it extensively. This further spread awareness and the number of claims increased even more. The number of claims and the amount to be compensated started increasing exponentially in the coming years. This put a lot of pressure on the financial institutions as it is very difficult for them to take care of thousands of pounds on a daily basis. Also, there were many people who were passive about making claims. They kept procrastinating and didn't really do anything about their claims. All these issues gave rise to a lot of opinions. There were several suggestions put forward to the Financial Conduct Authority (FCA) to have a deadline for making PPI claims. Having a deadline would encourage people to file their claims as soon as possible. It would also make people look for any mis-sold policies with them. Thus, the FCA has finally decided to keep August 2019 as the deadline for making PPI claims. Earlier, the deadline was set a year earlier, but this decision faced a lot of flak and from the media and consumer groups. There were still a lot of high-voltage claims coming up every day and people thought that it would be too soon to end the claims. This had a lot of implications on the commercial banks as they will have to face the maximum inconvenience as the deadline is extended. There are already several complaints going to the banks every single day. Further, the deadline has made people more aware about their policies, which in turn increases the claims manifold. Thus, the banks will have to work much harder and pay out much more money to the affected customers. This would add to the already billions that the banks are setting aside only for the purpose of settling PPI claims.