Without a deadline for PPI complaints, UK banks will have to refund millions of consumers with PPI complaints.
The Financial Conduct Authority is still sceptical of agreeing to a deadline requested by the British Bankers Association because millions of UK consumers are still treated unfairly by their banks regarding their payment protection insurance complaints.
PPI or payment protection insurance, is designed to repay loans, mortgages and credit cards for an average of five years. It pays out in case you get sick, have an accident or become unemployed. Many who did not need the insurance policy were sold the financial product.
Today, UK banks have added more than £1.5 billion in total for mis sold PPI, bringing the earmarked refunds to more than £23 billion.
The BBA has requested a deadline to ensure banks have enough capital to support the UK’s real economy.
Despite improvements in the services sector, the UK economy could recover significantly if manufacturing and export sectors, the real economy, could receive better financing. Costly PPI refunds have impeded the progress of many small and medium enterprises.
Meanwhile, Lloyds shoulders almost half of the PPI bill by adding more than £900 million for UK consumer PPI refunds.