Financial Conduct Authority: PPI Claims Have Dropped By 2.8 Per Cent
Overall complaints against the UK banking industry went down by 2.1 per cent according to the FCA. Loan insurance and even payment protection insurance is down by 16.6 per cent. The number of direct redress is going down. Bank leaders are positive a PPI claim deadline could arrive earlier than expected.
Despite the fall in number of PPI claims, packaged bank account complaints have increased. The FCA attributes this to a hype started by rogue claims management companies.
PPI Claim Deadline
The financial industry is looking to the FCA to impose a deadline on the already-expensive PPI mis-selling scandal. The scandal’s expensive payouts, including the administrative fees PPI claims companies unintentionally pushed up, plague banking industry profits.
The 2015 call for a deadline is not the first financial-industry outcry. In 2013, to prevent further recompense ballooning and to help the ‘real economies’ receive better financing opportunities by allowing banks to rebuild their capital, the British Bankers Association (BBA) and Confederation of British Industry (CBI) called on the FCA to introduce a deadline. The FCA denied the request.
Mis-Sold PPI and Other Troubles
Despite the drop in mis-sold PPI claims, banks face increasing numbers of packaged bank account claims from unsatisfied consumers. They claim banks sold useless perks to increase the price of packaged bank accounts. However, the Financial Ombudsman claims the financial perks are of great quality.