Customers still counting cost of PPI scandal
Citizens Advice has responded to a Financial Conduct Authority (FCA) announcement that it will consult on a possible 2018 deadline for PPI compensation claims.
Ten years ago Citizens Advice launched a super-complaint into the PPI scandal – since then it has helped people with more than 90,000 PPI issues.
Gillian Guy, Chief Executive of Citizens Advice, said:
“The PPI scandal reached pandemic proportions and it’s still not fully resolved.
“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."
Notes to editors
- The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local bureau in England and Wales, visit citizensadvice.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.