FSA waives 8-week deadline for backlog of PPI complaints
by Luke Whitmore, 17th June 2011
The FSA has granted HSBC an extension on their deadline for
dealing with complaints about mis-sold PPI.
As with Lloyds, Barclays and RBS, the usual eight-week time
limit has been waived, giving HSBC until the end of August to deal
with a vast backlog of complaints about PPI (Payment Protection
Insurance) policies which were sold inappropriately to customers
who did not want them or in some cases could not even claim on
them.
The banks put complaints on hold for months as a judicial review
was conducted over the legality of the FSA's new PPI regulations
being applied retroactively. After the banks lost the case,
however, they were left with the responsibility of compensating
wronged customers, and, with a huge number of complaints to sift
through, meeting the FSA's ordinary eight-week deadline seemed
impossible to achieve.
In addition to the leeway granted for the backlog, any
complaints received since the end of the judicial review in April
but before the end of August will have to be dealt with before
sixteen weeks have elapsed. A twelve-week deadline will apply to
any cases lodged after the end of August but before the year is up.
After that, the original eight-week deadline will come into play
once again.
PPI policies were mis-sold to millions of companies, creating a
huge scandal within the financial industry. The banks have set
aside billions of pounds in compensation for those who were wrongly
sold loan insurance that was of no use to them because they did not
meet the criteria for cover, or who simply had it forced on them
without being told that it was optional or that alternatives were
available.
Barclays have since announced that they will be paying out to
all customers who complained before the end of the judicial review,
with no questions asked, but the other banks have declared that
they do not plan to follow their lead.
If you have been mis-sold PPI, we can help you claim back
PPI today.
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