St John’s Buildings Barristers point out that the FCA’s established PPI claims guidelines have meant consumers lose more than they gain undergoing the process. Barrister Elis Gomer said that the FCA has ignored and privately settled PPI matters wherein it had banks return the consumer’s full PPI value and compensation.
Currently, the FCA’s guidelines allow consumers to claim 20 per cent of their payments for a policy a financial adviser or representative sold while the latter has received more than 50 per cent of the policy’s value. Gomer pointed out the value is four times less the value consumers should have received.
Plevin’s case, which created a process shake-up allowing consumers to claim against representatives who had failed to disclose high-value commissions, received follow up cases that allowed claimants to receive their full commission cost. However, the FCA had helped banks settle matters behind public eyes.
The FCA’s PPI process had allowed banks to pay the lowest sum possible.
The allegation puts the £40 billion PPI as undervalued with over billions not rightfully returned to consumers. However, St John Buildings’ Barristers have not announced whether they will issue a legal challenge regarding the matter.
The FCA and banking industry are working to bring PPI claims to an end on 29 August 2019. Through the help of an advertising campaign featuring the animatronic head and voice of Arnold Schwarzenegger, PPI claims traffic has picked up in its highest since 2012.