In Money Marketing’s list of the UK’s biggest fines the Financial Conduct Authority has issued, payment protection insurance earns the biggest ones in 2016. This is the fine of CT Capital Limited of £2.4m as part of its foul activity regarding payment protection insurance. The umbrella group representing several lenders and loan brokers faced the huge fine for its maltreatment of consumer complaints
According to the money tips and news website, CT Capital had sold about 31,000 PPI policies in 2005 and 2008 and profited about £63m in commission. According to the FCA, the 6,660 PPI complaints from May 2011 and November 2013 could have been crucial as CT Capital has used 11 months to make teh changes to its processes to ensure they comply with current PPI complaint rules.
Currently, the UK banking industry has about £40bn earmarked for mis-sold PPI with over £20m returned to consumers. PPI is said to have been mis-sold since the 90s alongside mortgages for existing properties.
The FCA’s PPI deadline has yet to be final after it said its consultation with banks and consumers is still undergoing evaluation. Banks are opting for the pre-announced June 2019 deadline but campaign groups for consumer rights such as Payback Time said banks are likely saving about £20bn from repaying consumers their refunds by evading their responsibility through a deadline and using countrywide investors as their excuse.