PPI Claims Deadline To End Banks and Lenders Miseries?
Experts note banks and lenders may enjoy increased attention from investors after the FCA’s announcement of a PPI claim form submission deadline. The mis-sold PPI scandal that rocked the UK financial industry spooked plenty of investors since the UK Supreme Court decided that banks and lenders must pay for the scandal in full.
Investors find the UK’s Big Four Banks to be quite hot as an estimated £1 billion per quarter is lost to PPI mis-selling. Lloyds alone had lost £13 billion to mis-sold PPI, accounting for £500m to £1bn quarterly per annum.
Banks, including Barclays, HSBC and RBS each paid a half-billion quarterly for mis-sold PPI since 2011.
A Huge Number Of Complaints
Meanwhile, law firms and observers believe millions more consumers will make their PPI claims by the spring of 2016, the date of the deadline’s efficacy until 2018. The Financial Conduct Authority also announced it would use an accompanying online and television campaign to urge consumers to make a direct redress if they have not yet accomplished such.
Law firm TLW Solicitors also announced increasing its ranks as a potentially large number of claims for PPI refunds could surface due to the integration of Plevin v Paragon Personal Finances’ landmark court decision.
The decision indicates that brokers who have not disclosed their commissions to their clients would need to refund the PPI to the consumer.
However, some experts contest that bank employees and front-liners were the ones who sold almost every payment protection insurance wrongly.