The payment protection insurance could continue further than the predicted 2019 deadline. The FCA has held back its decision on the deadline, which means further PPI provisions for banks. Bank share prices fell after the FCA’s announcement of the delayed decision.
UK banks currently have £40bn set aside for PPI and they have only so far repaid £20bn to mis-sold consumers. However, a campaign group said banks are saving £23bn from refunds due the deadline.
According to the campaign group Payback Time, UK banks are money from UK consumers by halting PPI refunds through to the June 2019 deadline. Because of the banks failing to inform consumers that were potentially mis-sold PPI.
Historically, PPI is the UK’s biggest financial scandal. The insurance policy was sold with loans, credit cards and mortgages without considerations for the age, employment status or health of the customer.
As a result, millions of UK consumers are deemed ineligible to claim for their benefits when situations arise.