Payment protection insurance could last longer than 2019. The Financial Conduct Authority has held its PPI claims deadline decision, which could mean additional PPI provisions for banks in the near future. Bank share prices including taxpayer-backed Lloyds fell by 1.36 per cent after the FCA’s announcement of a delayed decision.
UK banks currently have £40bn earmarked for PPI and they have repaid more than £20bn to consumers mis-sold the insurance policy. However, a campaign group said banks are saving £23bn from refunds due to the PPI claims deadline.
According to new campaign group Payback Time, UK’s banks are swindling £20bn from UK consumers for halting PPI refunds through the FCA’s June 2019 deadline. Due to banks failing to inform consumers probably mis-sold PPI, claims management companies had helped push up administrative costs, disabling banks from ascertaining the exact refund package they need to allot for their PPI misgivings.
PPI is still the UK’s biggest financial scandal in history. The insurance policy was sold alongside loans, credit cards and mortgages without consideration for the customer’s age, employment and health status. As a result, millions of UK consumers are deemed ineligible to claim for their benefits when situations arise.