Lloyds Banking Group is set to lobby the City regulator to bring forward the PPI compensation deadline, now that the scandal has cost them almost £14bn. This deadline is a claimant’s last chance to receive compensation for mis-sold payment protection insurance.
If a person’s earnings fell below what they had to pay back on their borrowings because of illness or a loss of job, for example, PPI policies were meant to repay the extra amount. They were sold alongside mortgages, loans and credit cards since the 1990s. Unfortunately, these were mis-sold to thousands of people over the country who, for example, wouldn’t have been able to claim the money they paid into the scheme. The banks were making a huge amount of profit from them, and returning just 15% of the income from them to claimants.
Since this came to light, the banks have to compensate anyone they wrongfully sold PPI to. This has been happening for almost a decade now, and the banking industry alongside the FCA is starting to want to move on.
There is already a proposed deadline, put forward by the Financial Conduct Authority (FCA), for 2018 to be the cut-off date. However, Lloyd’s finance director George Culmer, believes this should be brought forward sooner. He said, “we think a shorter time bar’…‘will get people to act more quickly’…‘two years is excessive.”
Almost half of the banking industry’s total PPI scandal bill belongs to Lloyds, so it is understandable why they’d want to see an end to people being able to claim. The FCA is also keen to see a line drawn underneath it all and to allow the banks and the economy to move on. However, before that can be put in place, the FCA will need to consult on several matters within the proposal.
The bank has now had to take out £13.9bn as provisions for the PPI scandal. This includes £500m in the third quarter, alongside another £100m for claims on different products their branches have sold. Lloyds are preparing to have to take out even more provisions if the number of complaints don’t decline.
Here at Enjay Claims, we accept that a cut-off point is necessary to allow the economy to recover fully. However, in order for this “scandal” to be over, the people who have been wrongfully tricked into buying PPI need to get the money back they deserve and for justice to have been fully served. In order to ensure that this happens we work closely with all claimants who come to us to uncover any wrongdoing, no matter how well it has been hidden. To find out more about how we can help call us on 0800 612 7958.