By successfully arguing that due to the concealment of the amount of commission within the PPI Product, the six-year limitation period to claim compensation should not apply, Potter has now set a precedent for the 26,000 other active claims already registered.
While this legal judgment is still being digested by the FCA and all financial services firms, there are some steps that can be taken early to be proactive in getting ahead of the expected increase in claims and remediation requirements.
Firms are likely to see an uptick of activity in Data Subject Access Requests (DSARs) and complaints as Claims Management Companies (CMCs) see an opportunity to reopen the cash cow that was PPI.
A different approach for old PPI claims
The prospect of reopening these old PPI claims will be the last thing financial services firms will want to face, but by being proactive now and understanding their potential exposure, they can take control and explore a different approach this time around.
As longstanding remediation programme experts who specialise in taking a fresh approach to these exercises, EQ understands the pressure financial services firms might be feeling right now. We know that being proactive in putting things right when they go wrong goes a long way with the regulator and getting started on the first step of the remediation process can make a huge difference.
Ready your data
In our experience, data is the key place to start. By analysing and understanding the number of customers affected, and ensuring this data is accurate and up to date, firms will get ahead of the game in preparing for the next step.
With our data analysis and tracing expertise, EQ can help support this exercise to identify the relevant cohorts. We can manage trace and contact programmes which deal with a vast number of individuals as well as complex criteria.
Process and automation options
The second key consideration is how to approach this project differently than previous PPI remediations. Lessons learnt from many years of PPI have given firms insights into the most effective and efficient way of managing these programmes.
Companies like EQ have run multiple remediation exercises in the past and can offer specialist advice and consultancy to deliver the best process options. This includes the best use of automation to help increase the speed, accuracy and efficiency of claims and complaints management.
In our case, we have run many different types of remediation, involving in-house support right through to full outsourcing so we can help you to plan which model would work best for your business.
Get in touch to get ahead
With over 20 years’ of experience from many remediation projects, EQ has both the data analytics skills and operational expertise to offer financial services firms expert advice on how to handle the outcomes of this ruling.
Get in touch for a more detailed conversation to introduce our approach of consultative design and discuss how we deliver through a combination of people and technology.