The PPI time-bar: is your business prepared?
Ensure your firm effectively meets the operational challenges
The FCA has now confirmed the finalised deadline for making new payment protection insurance (PPI) complaints will be the 29th August 2019. In addition, the FCA has committed to run a two year consumer communication campaign which will be launched in August 2017. Read our full update.
The final rules and guidance represents two years of industry interaction by the FCA to understand and create a package that is fair to the industry and consumers to draw a close to payment protection insurance claims.
The PPI deadline will create a number of challenges for firms due to the following factors:
- The FCA expects firms to start the process of proactively communicating with customers whose complaints were not upheld at Phase 1 but who are now eligible for redress at Phase 2 due to the failure to disclose excessive commission which gave rise to an unfair relationship. It is estimated that firms will have to proactively contact 1.2 million customers
- Firms will need to make an assessment of the amount of redress to be paid. Redress will be calculated as the excess commission over the 50% tipping point
- Firms should expect volatility in complaints numbers as a result of the FCA’s communications campaign, the release of ring-fenced complaints held by the Financial Ombudsman Service (FOS) and the expected increase in Claims Management Company (CMC) activity
- Firms will need to ensure effective capacity planning to manage these operational issues
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We are ideally placed to help firms meet these challenges
Huntswood is the UK's leading resourcing and consultancy firm in the area of complaints. For over 20 years, we've supported, and continue to support, a wide range of leading financial institutions with PPI complaint handling / remediation solutions – including the industry’s largest PPI remediation exercise to date. Our clients are benefiting from:
- Access to specialists from senior operations managers and qualified case handlers to data gathering and administrative support
- Our own resource and capacity planning approach
- A dedicated Learning & Development (L&D) team who are able to support with training requirements for frontline staff
- Independent challenge of a firm’s redress methodology and planning - including assurance over redress calculations related to Plevin and profit share arrangements
The benefits of partnering with Huntswood
- Quality of resource and delivery – From initial resource selection, through to project deliverables, we ensure quality and compliance. Only 5% of candidates make it through our strict vetting process
- High performing teams – We provided over 1 million days of resource during the last year, with c.4,000 people currently deployed. Our reputation is built on the supply and management of high performing teams, working to agreed KPIs to maximise efficiency throughout the operation
- Best practice and continuous improvement – Our extensive complaints management experience means we can add value from the outset. A number of our consultants are ex-regulators, and we are on the FCA’s Skilled Person Panel for Conduct of Business
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