Banks may take until next summer to respond to last-minute PPI claims
Some people who tried to reclaim PPI in the run-up to August's deadline may not get a response until summer 2020 due to the huge volume of last-minute complaints, the financial regulator has warned.
Usually, a financial firm has a maximum of eight weeks to respond to a complaint such as a PPI claim, and if it fails to do so you can escalate your case to the Financial Ombudsman Service.
But the Financial Conduct Authority (FCA) has warned banks will not be able to meet their normal complaint handling times. It says a number of banks have told it that complainants may not receive "final" responses until next summer – which could mean some have to wait up to a year.
The PPI deadline has now passed, but a few may still be able to claim in exceptional circumstances. See our PPI: Can I still reclaim? guide for full info.
What has the regulator said?
The FCA hasn't said how many complainants may have to wait until next summer for a response – we've asked for this figure and will update this story when we hear back. We're also checking whether you can still escalate your complaint to the ombudsman after eight weeks if you haven't had a response, or if you now need to wait longer.
The FCA says it is "challenging" banks to process claims as fast as is reasonable. And it's pointed out that if your complaint is delayed but eventually upheld and you're entitled to compensation, you will receive interest on the amount you are due (typically 8%) – this will also cover the length of time it took to respond, so you won't lose out financially from any delay.
The FCA says if you see yourself as a vulnerable customer or have particularly pressing financial difficulties, you should explain that to your provider, which will assess if it's appropriate to deal with your complaint sooner.
MSE weekly email
FREE weekly MoneySaving email
For all the latest deals, guides and loopholes simply sign up today – it's spam-free!
Join the MSE Forum discussion