The UK’s financial watchdog is taking action to put a line under payment protection insurance, one of the UK biggest financial scandals once and for all.
After plans of the Financial Conduct Authority imposing a time limit on claiming back compensation for PPI, consumers must act quickly if they believe they are entitled to a PPI claim.
The end of the scandal is in sight and for banks this could be seen as a positive as this continual scandal could be put to rest.
Why has the FCA proposed a deadline?
The Financial Conduct Authority announced earlier in the year the necessity for an intervention in the PPI complaints handling. This came after banks have been fined for not properly dealing with PPI mis-selling complaints.
There have been a staggering amount of PPI claims and they are only just beginning to decline. Lloyds bank has been the worst lender in the scandal to date. They were forced to set aside £1.4bn in the first half of the year to cover the costs of PPI mis-selling. To date Lloyds has set aside £13.4 billion of compensation to aid customers who were wrongly mis-sold the payment insurance. Lloyds are closely followed by Barclays, Royal Bank of Scotland and HSBC.
Banks have been pushing for this deadline for years in a bid to put an end to the scandal but nothing has been set in stone as of yet however, if you think you are entitled to a PPI claim you should act sooner rather than later.