PPI marketing campaigns may be the bane of many lives – including legitimate direct marketers, who have been dragged down by the rogues – but at least two agencies will now see some benefit with the City watchdog planning to launch a major consumer push.
The Financial Conduct Authority has appointed M&C Saatchi and Manning Gottlieb OMD to launch the campaign – which it claims will be worth £42m – to raise awarness of the two-year deadline for claiming compensation for mis-sold PPI.
The campaign is pencilled in to launch in June next year, although this will depend on when the final PPI compensation deadline is finally set; it is currently out to consultation.
The FCA hinted in the summer that banks may be facing three more years of mis-selling claims, but it sparked a warning that PPI nuisance callers could hammer the “final nail in the coffin” of the legitimate telemarketing industry.
At the time, one industry source told Decision Marketing: “While this is obviously good news for consumers, for our industry it is potentially disastrous. PPI has been one of the biggest drivers of complaints to the Information Commissioner’s Office for years; the prospect of another three years is horrendus.
“Every time a PPI nuisance call is made, our industry’s reputation takes another battering. We are already getting to the point where consumers are getting afraid to answer the phone. This extension will be the final nail in the coffin.”
The deadline extension is predicted to lead to thousands of new claims from consumers. And one analyst at Shore Capital reckoned banks could face extra costs of as much as £1bn, on top of the £24.2bn they have already shelled out on PPI claims.
Complaints continue to be lodged about mis-sold PPI. The Financial Ombudsman Service received 43,000 customer complaints between July and September this year after their claims were rejected by banks.
PPI extension ‘the final nail in telemarketing coffin’
Call for industry to shape marketing law revolution
Brands face court action for breaching DM guidance
Marketers clueless about Brexit impact on data laws
Industry on alert as EU reviews online privacy laws
ICO updates marketing guidance amid legal threat