The Financial Conduct Authority announced that in two years, payment protection insurance will end. The city watchdog has called on observers and experts consulting about communicating with the public and a public relations strategy to reach consumers and urge them to make a PPI claim.
According to the city watchdog, about 18 banks receiving almost all PPI complaints would have to pay £42 million for a communication campaign that would guarantee all consumers with mis-sold PPI would be redressed before 2018, the year of the deadline.
According to the city watchdog, an ‘inertia’ among consumers developed due to an absence of a PPI deadline.
Capping The PPI Bill
The FCA believes the deadline will help prompt consumers to act on their payment protection insurance and help many pay their debts and get redress as soon as possible.
Meanwhile, compensation complaints are down by 17 per cent in the first half of 2015. The deadline will help cap the growing £24 billion total mis-sold PPI bill. Lloyds has half of the PPI refund total at £14 billion.
Lloyds was one of the banks that had suggested payment protection insurance to end sooner. According to Finance Director George Culmer, a sooner PPI deadline would mean best for both banks and consumers.