Citizens Advice blames the banking industry for “not acting sooner” making their bills skyrocket to more than £20 billion and counting.
Consumer group Which? filed a collective complaint against the UK banking industry for mis selling payment protection insurance. The efficient insurance product’s reputation became notorious for being a commission catalyst as many bank employees mis sold them to consumers who couldn’t use it because they were beyond eligibility.
Citizens Advice predicts the scandal is still growing after Which? filed its complaint and the UK Supreme Court approved the FCA’s regulation for PPI complaints recompense 10 years ago.
According to CA Chief Executive Gillian Guy, banks had dragged their feet and the UK banking industry is paying the price for its actions.
Citizens Advice had played a key role to force the industry to compensate consumers for PPI mis selling. Guy added that PPI is proof that financial institutions could not “go around ripping off consumers”.
So far, banks had paid out more than £20 billion. Should a new landmark PPI case be integrated with FCA PPI claims regulations, analysts estimate the bill to rise up to £33 billion including administrative costs.