The UK’s biggest insurance fiasco has yet to see its end until the City watchdog’s appointed deadline; analysts expect banks to add more than £500m to the enormous bill of £30bn for mis-sold payment protection insurance.
Lloyds, the biggest mis-seller of PPI, is likely to announce adding a further £200m to its total PPI bill, which could reach £18bn, more than half of the UK total. Analysts also expect HSBC and RBS to announce top-ups to their respective PPI bills.
Following the Financial Conduct Authority’s PPI claims deadline announcement, consumer claim numbers grew in size. According to the Association of Claims Companies (ACC), banks faced with shocking claims figures have employed rejection and delaying tactics. The ACC said banks who used the excuse of “missing consumer files” against consumers with legitimate complaints increased in number since April.
The City watchdog believes its decision to put in place a PPI deadline by August 29, 2019 is enough time for consumers to make a complaint and receive all their refunds. However, consumer groups find it unfair that the banks’ claims processing procedures are still lacking fluidity and fairness. The FCA responded by announcing the final rules and guidance for banks regarding PPI before the announced deadline.