Payment protection insurance functioned perfectly for all consumers. The product had no flaw in itself. The manner bank employees sold the insurance policy tarnished its reputation. According to analysts, consumer confidence is at an all-time law for UK banks.
Bank analysts added that it would take more than a “flawless decade” of no offences and mis-selling for banks to restore their local and international consumer confidence. Aside from PPI mis-selling, banks find themselves in the middle of regulatory action for rigging and toxic deals worldwide.
Analysts said banking consumer confidence was at its worst in 2009, the year consumer group Which? sent a collective complaint about payment protection insurance to the former watchdog the Financial Services Authority.
Analysts said the PPI bill of £27 billion seemingly acts as a “barometer” of consumer confidence in the United Kingdom. PPI is the UK’s largest financial scandal, affecting millions of consumers.
The UK’s “Big Five”, Lloyds, RBS, Santander, Barclays and HSBC, are all due to add to the PPI bill a collective £5 billion. It was reported that Lloyds would spend about £2.5 billion alone. Today, Lloyds addresses half of the PPI bill at £14.5 billion.
Analysts said that despite agencies such as the Financial Conduct Authority and Financial Ombudsman helping resolve consumer and bank disputes, the memory left by PPI would be a reminder for consumers that banks can trick consumers at any time. It would be more than a decade until this memory regarding payment protection insurance would fade, they said.