As PPI Claims Numbers Dwindle, Is It Finally The End Of Payment Protection Insurance? Not Quite!

May 26, 2015
by admin in PPI News

Everyone is rejoicing. PPI claims may finally end for the United Kingdom. Spelling a breather for UK’s banks and the end of cold calls and text messages for UK consumers, everyone should hold their horses though. Nobody ever considered the slow number of retrenched PPI already in the Financial Ombudsman.

Looking at the bigger picture, one could say that the UK progressed slowly in dealing with PPI. It was in 2009 when consumer group Which? filed a collective complaint against the UK banking industry for mis selling the insurance policy worth £3500.

Denying allegations, the UK banking industry pushed their denial further until the then-Financial Services Authority placed strict claims rules for banks accused of unfairly recompensing consumers. It was when the UK Supreme Court ruled against banks that had them finally recompensing consumers.

All of this happened five years ago. You might say it’s quite a short while. However, the issue could have been resolved faster if banks recompensed early and alerted consumers about the mis selling as appointed by the court.

Many analysts say that PPI could finally end in just seven or eight years. With the high volume of PPI claims with the FOS, this is highly unlikely to be the number.