The City watchdog cannot give a definite total to the overall expenses of banks for payment protection insurance before the proposed claims deadline by 2018. However, banks are to pay a sum of £42.2 million for an advertising campaign to raise awareness about the deadline.
To guarantee the efficacy of the campaign, the Financial Conduct Authority is consulting with customers, claims representatives and the 18 institutions involved in the mis-selling of payment protection insurance. The consultation is set to end by February 2016. The date is also the speculated start time of the deadline until February 2018.
Part of the campaign involves the 18 financial institutions that mis-sold PPI sending 5.5 million customers possibly at risk of mis-selling but have yet to complain.
The FCA’s research indicated no clear path existed for payment protection insurance. Results indicated that half of the UK’s population possibly mis-sold the insurance policy have not yet made their claim because of the scandal’s open-ended nature.
The Financial Ombudsman Services believes the 18 institutions will receive massive numbers of complaints in the next few weeks. The FOS did not give an estimate of the claims volume. However, it said it is possible it can be larger than the volume of claims in 2013 during the peak of PPI claims.