Payment Protection Claim Delays
Payment protection insurance is again featured in the news since the announcement of the deadline that was given to the BBA (British Banking Association). The BBA were originally given the deadline that allowed them until the 31st August 2011 to clear their enormous backlog of Payment Protection Insurance claims that came from their own Judicial Review ending in May 2011.
The extension was given as a gesture of goodwill to help the banks clear the hundreds of thousands of claims stuck in a backlog as a result of the Judicial Review. It seemed almost impossible that the banks would have been able to deal with the current backlog whilst dealing with all of the new claims coming in at the same time, in a period of 8 weeks, so the deadline gave the banks 16 weeks to clear the backlog and start dealing with new complaints effectively.
Regrettably for the banks, all the excess media attention because of the end of the judicial review combined with the FSA’s new guidelines created an incredible amount of new interest. So the banks received thousands more complaints regarding the sale of Payment Protection Insurance, which in turn doubled their current workload and meant it was even less likely that they would meet the new 16 week guidelines provided by the banks.
In the beginning of August it looked like the banks were really struggling to meet the 16 week guidelines given by the FSA and that they wouldn’t have dealt with all of the cases by the end of August. But towards the end of August people began receiving letters from the banks stating that they had reached their decision and it would be with them shortly.
By the start of September it was apparent that some banks hadn’t cleared their backlog in time for the deadline and this resulted in thousands of angry customers because they had been expecting their refund. But now the banks have officially cleared their backlog from the judicial review and have started investigating cases again except the deadline which they have to deal with new complaints that have come in after 1st September 2011 is set at 12 weeks.
Before beginning your PPI Claims make sure you’re up to date with the latest news and information!
