The Financial Conduct Authority’s deadline consultation marks the possible end of an era for the UK’s financial industry. The consultation with consumers, claims management representatives and banks at fault for mis-selling payment protection insurance will guarantee a smooth and proper deadline. Initial proposals include a massive advertising campaign to inform consumers yet to make a PPI claim of the urgency.
The advertising campaign is set to cost about £42.2m in total. Banks are to shoulder the costs of the burden. However, the banks welcomed the deadline as predictability and risk management is imperative aside from a possibly higher refund bill for the United Kingdom.
Payment protection insurance, sold wrongly to many consumers decades in the past, has amounted to £24 billion in refunds to consumers. Some groups are unhappy with the possible deadline by 2018.
Consumer Group Which? and MoneySavingExpert.com both condemn the consultation and the possible deadline. They said it would only give banks an undeserved reprieve for trouble they themselves caused years back. The two groups said the banks dragged their feet at every opportunity to speed up and end the crisis.
It has been half a decade since Which? exposed banks mis-selling payment protection insurance to ineligible consumers. After almost a decade, the scandal may arrive to a proper final rest.