Arnold Schwarzenegger PPI campaign boosting self-claim rates

In an update on its awareness campaign, ahead of the 29 August deadline next year for claims to be submitted, the Financial Conduct Authority (FCA) said it was proving successful on several levels.

It launched adverts in 2017 featuring an animatronic head of Arnold Schwarzenegger, the Hollywood actor and former governor of California, urging consumers to act now.

PPI was a financial product meant to help people keep up with loan repayments if they became ill or unemployed.

But it was often added on to credit cards, mortgages or other loans without people wanting or needing it.

The FCA said on Wednesday that more than £30bn had been paid out in redress since 2011 – with £3.7bn of that sum realised since the start of the campaign.

It said that marked a 64% increase on the previous ten months. Complaints were also up by a similar level.

There was concern when the watchdog began its efforts to boost awareness that hundreds of thousands were losing money they were entitled to in fees because they were using claims management firms (CMCs) to seek compensation on their behalf.

The FCA said in its update that a majority of claimants, 55%, were now submitting cases themselves.

Its campaign includes clear information on how best to do this.

Executive director of supervision, retail and authorisations at the FCA, Jonathan Davidson, said: “We are encouraged by the results of the first 10 months of the campaign.

“However, with less than a year until the deadline, we will carry on working hard to ensure every consumer has had the chance to make a decision on whether to complain about PPI.”

The FCA said it had also seen an improvement in how banks and other PPI providers engaged with claims.

Mr Davidson added: “Where we have seen firms failing to meet the standards we expect, we have challenged them to make improvements.”