UK’s top banks who have mis sold PPI are split about the decision to reach a PPI claim deadline for 2014 due to consumer group concerns about PPI being sold for a decade. Experts say that the deadline will make banks more infamous to customers.
UK banks have set aside more than £13 billion in PPI compensation and according to experts, the amount could double by the following year. The Financial Services Authority considered the proposal only if the banks launch a country-wide advertisement campaign to encourage customers to make a PPI claim.
A source indicates that at least one UK bank became sceptical about the decision to reach a deadline. The British Banking Authority continues to hold talks with the FSA regarding a possible deadline to remove the great uncertainty surrounding the PPI scandal.
Consumer group Which? says that the banks have not done well in informing customers about their right to make a PPI claim. CEO Peter Vicary-Smith points out that once banks inform their customers, they have a six-year deadline and this is fair. However, because of their failure to address this task, setting a deadline one year from today is unfair.
According to experts, the uncertainty of the PPI claims scandal is costing the industry billions of pounds in expenses and is slowing down the growth of the economy.
The announcement of the possible deadline brought in an influx of consumer claims and PPI claim form downloads reached high numbers in the last few weeks.