Banks Still Have To Pay £19 Billion Before The PPI Claims Deadline
The mis-sold PPI scandal showed lower interest from consumers this year despite taking up a higher number in the FOS’ immense queue of complaints. All of this is about to change. It would first get worse, then get better in an abrupt manner, probably.
Analysts see that banks may have to pay more than £19 billion before the UK’s biggest direct redress problem finally ends, for good.
BNP Paribas Global Head of Equity Derivative Strategy Edmund Shing said even though the financial industry had suffered more than £25 billion repaying their consumers for the scandal, it’s still not enough. In his post in IBTimes.co.in, he cites Professional Financial Claims Association Analyst Nick Baxter who points out banks still have to pay up about £10-15 billion for PPI claims.
In two years, banks will shell out about half the amount they did the last six years of PPI claiming as consumers will rush making claims to their banks.
The Financial Conduct Authority announced the deadline after publishing its PPI investigation results. They said consumers are the ones dragging their feet to make a claim and rogue claims management companies and other parties took advantage of the situation to gain more profits.
What To Do Now
To get your PPI refunds before the rush, it is advised consumers make a claim before the spring of 2016, the time when the FCA’s deadline timer would commence until the spring of 2018.
It is speculated that during this time, exponential numbers of consumers would make their PPI claim. The Financial Ombudsman, overwhelmed with concerns, might take more time in making your claim successful.