It's 'Payback Time'Aug 28, 2017
The Alliance of Claims Companies is telling the banks it's 'Payback Time'
The deadline for reclaiming mis-sold PPI is a subject that has divided opinion since it was first promulgated in 2015. With negative media attention often focused on Claims Management Companies (CMCs), it has served to divert attention away from the impropriety that has occurred within the UK banking industry.
What has become apparent is that by redirecting consumer anger away from the banks, it has in effect created a smokescreen which conceals the true implications of the time-bar. This has led to many consumers overlooking the real issue at hand, and failing to ask why the banks are so eager to ensure the government and regulators draws a line under the PPI ordeal. Under plans which are to be announced early next year, the Financial Conduct Authority (FCA) are seeking to introduce regulations to limit the lengths CMCs can go to, to expose the full extent of the PPI scandal.
The Alliance of Claims Companies (ACC) is a collective group of CMCs that are working together to promote access to justice and fair customer outcomes with the financial industry. First formed in 2015, they aim to promote best practice amongst CMCs and seek to ensure customers are fairly and properly compensated when they have been mis-sold by their financial provider. Believing the regulators should act to protect consumers from bad practice, they have formed the ‘Payback Time’ campaign to challenge the decisions being made by the government and regulators over the plans to close the book on PPI.
The ACC commissioned YouGov to undertake some research to mark the launch of the ‘Payback Time’ campaign and the results of that survey identified that just under half (49%) of the people questioned felt the government was not doing enough to improve the way banks treat their customers. In addition to this a clear majority (57%) of people felt banks needed to do more to inform consumers of the amount of PPI redress still waiting to be paid.
The regulators, as part of their time-bar proposals will compel banks to spend £42 million on promoting how, and indeed why customers should investigate whether they have been mis-sold PPI. However, this pales in comparison to the £23bn the banks still hold in PPI redress, the vast majority of which will remain in their pockets if they succeed in persuading the government to implement the time-bar. The ACCs ‘Payback Time’ campaign hopes to expose how the government and the banks are working together to keep the money owed to consumers for mis-sold PPI.
We spoke to Simon Evans, Chief Executive of the ACC, who told us:
“We have decided to implement the Payback Time campaign as we await further details from the Government and regulators that could have dire and far reaching consequences for consumers across the UK. It is vital that claims management companies can continue to operate to aid consumers in their quest for access to justice over this mis-selling scandal.
“The potential threat to this access to justice, by the imposition of a time-bar, which has been mooted by the FCA, is a grave concern and, set against the background of tightening family finances, would see banks and other financial institutions getting away with the scandal by keeping hold of billions of pounds that rightfully belongs in the pockets of consumers up and down the United Kingdom.
“The Alliance of Claims Companies cannot stand by and let the banks get away with it, aided by Government and regulators. It simply isn’t right and our campaign, spearheaded by members like We Fight Any Claim, is aimed at securing the best outcome for consumers in enabling them to reclaim the money that is rightfully theirs, and not letting banks keep this money to add to their bonus pot.”