Consumer groups Which? and MoneySavingExpert.com both sent a letter to the Financial Conduct Authority asking that it reconsider imposing a PPI claims deadline by 2018. Company CEOs Richard Lloyd and Martin Lewis respectively, said the deadline works against consumers. Which? was the consumer group that made the first collective PPI complaint against the UK finance industry.
Will a PPI claim deadline tread against UK consumers or will it do more good? Well, it might in two ways, according to analysts.
Give Back To Both Local And Global Economies
An estimated £24 billion bill for PPI mis-selling is enough to provide financing for three start-ups in the United Kingdom. As the country focuses on being the finance capital of the world, the industry is doing poorly in improving its base capital. Analysts said that to give back to the local and global economies, the UK finance industry must help strengthen local businesses focused on manufacturing UK exports.
Having a PPI claims deadline strengthens the investor base of banks. A stronger investor base would mean UK industries can receive better financing options. Without the troubling presence of a possible £1 million PPI recompense monthly, banks can do very well for both the local and global economy.
A Stable Finance Industry
Despite claims that the UK government is bending under the thumbs of the UK banking industry, the government knows as well that it must have banks on strict compliance to rules they have set. Banks know that due to poor foresight on benefits, incentives and macro developments, employees can exploit the system for their own gain.
In reality, bank CEOs have minimal control over managers and underlings. They are the last to know about the unscrupulous practices executed between bank branch managers and employees. With the PPI scandal finally behind banks, CEOs may create better disciplinary measures to make sure scandals of this immensity will never happen in the future.