The ACC, in their response the the Financial Conduct Authority's Consultation Paper CP15/39, were clear that they did not feel that a time-bar on PPI claims was in the best interest of elderly and vulnerable consumers. It made the case clearly to the FCA that they would challenge the imposition of a two year time-bar as they did not feel this was the best for consumers across the UK.


Now, in an article published in The Times, we are pleased to see this argument being taken on by the PFCA, with whom we meet regularly to best serve all consumers and CMCs.

The article states that:

"Older people could miss out on millions of pounds in compensation for mis-sold payment protection insurance if the financial regulator introduces a deadline for new claims, an industry body has warned.

Elderly and vulnerable groups also could be affected disproportionately if the government carries out its plans of capping the fees that claims management companies can charge for taking on people’s cases, according to the Professional Financial Claims Association.

Its alarm call comes as the Financial Conduct Authority considers whether to introduce a two-year time limit for PPI claims, a measure that has been strongly advocated by banks.

PPI is Britain’s biggest single financial mis-selling scandal, which so far has cost companies almost £40 billion in compensation, interest payments and administration. The decision about whether to introduce a cut-off for claims is one of the highest-profile issues that the FCA has to resolve, with competing interests threatening legal action if they disagree with the outcome.

Some close to the process believe that such is the legal and political minefield surrounding the issue that the FCA may delay its finding until after Andrew Bailey, its incoming chief executive, arrives in July.

According to research by Populus commissioned by the PFCA and seen by The Times, half of people aged over 65 were not confident about pursuing a PPI claim without help. In comparison, nearly three in five in the 35 to 44-year-old group would be happy to fight their own cases.

Nick Baxter, chairman of the PFCA, which represents claims management companies, said:

“The government cannot be seen to be discriminating against vulnerable groups. Yet both of these initiatives would discriminate against vulnerable groups.”

The article goes on to mention the viewpoint of ACC founding member company, We Fight Any Claim:

"We Fight Any Claim, a Cardiff-based (sic) claims company, has warned the FCA that it will legally challenge any deadline for claims by bringing proceedings for a judicial review.

According to Stephen Knafler, QC, who provided a legal opinion for We Fight Any Claim, introducing a deadline would be “probably unlawful”.

The FCA has admitted that a cut-off “probably does have potential to present a greater risk of adverse outcomes to some vulnerable consumers”, but it said that it could take those risks into account in any advertising campaign to alert people to a new deadline."

The ACC will, alongside the PFCA continue this fight to ensure that no consumers are left in a detrimental position by the implementation of a time-bar that is not properly introduced.