According to the Financial Conduct Authority (FCA), the remaining cost of the Payment Protection Insurance (PPI) scandal for banks isn’t able to be estimated. These comments have been made in light of the proposal to cap the time limit that claims can be made to 2018.
A statement made by the FCA reads, “We concluded that no amount of data or effort could give us reasonably precise and meaningful numbers on the future path of PPI complaints”.
So far, the cost of PPI claims and the compensation has totalled £27bn for the financial industry. With an unknown amount also seemingly on its way, it is understandable why they are happy for a deadline to be set. Yet the FCA has also put forward that an end to this scandal would help to build trust in the financial services industry again. Consumer groups, however, are starkly opposed to the deadline.
Currently, around 5.5 million customers who have potentially been miss-sold PPI should start receiving correspondence from their banks, informing them that they might be in a position for compensation. This number will include the people who have not yet complained, who will be added to the current total of 16.5m people who have, and whose compensation so far has totalled £21bn.
A condition the FCA hopes to impose upon the banks for the PPI deadline is for them, as well as other PPI sellers, to pay for a campaign to let consumers know their time to claim is running out. The total of this will come to £42.2m.
Despite this, the consumer body Which? believes that the FCA isn’t doing enough to ensure consumers get their compensation. In their belief, relying on customers to complain is the wrong way to have gone about this process. Especially if you consider that many of these people are unaware that they’re victims of the scandal.
If you have had any type of finance such as a mortgage a personal loan, car finance or a credit card or even a store card you could be entitled to PPI compensation. At Enjay Claims, we’re here to make this process as smooth as possible. If you think you might have a claim or are not sure and just want to ask a question all you have to do is get in contact with us by phone on 01708 854200 or 0800 612 7958. Our e-mail us at firstname.lastname@example.org. If you want to know more before contacting us visit our website at www.enjayclaims.co.uk.