Analysts believe that the ongoing PPI redresses will affect the development of the economy. Lacking capital, banks are unable to provide funding for medium to large enterprises, many of which are cornerstones of local industries.
The UK economy’s growth is highly dependent on service-oriented industries. According to the BBA, the real economy depends greatly on bank financing to boost the UK’s exports and balance the growth the service industry dragged forward. These include construction, manufacturing and development companies.
PPI’s total bill has reached £23 billion and is threatening to extend forward until after 2015.
The BBA had repeated asked the city watchdog to set a deadline for PPI claims, to no avail. According to the FCA, it was still too early to end the PPI mis selling refund as millions of consumers are still filing their complaints. Some have faced delays in the process, including a couple who had trouble re-mortgaging their home.
It is estimated that consumers will receive a bank response within 8 weeks of filing the claim.
So far, PPI mis selling is the biggest UK financial scandal in history. It even dwarfs the Foreign Exchange Scandal involving UK’s banks.