The Financial Conduct Authority’s promise of a spring 2018 PPI deadline would impossibly come to pass. As banks continue to add further funding for their PPI refund packages, analysts estimate more would be needed specifically for administrative fees before the possible June 2019 deadline.
Investors speculating the new deadline would escalate the total PPI bill further from the £30bn threshold it is currently situated in.
According to Lloyds Banking Group — the biggest PPI mis-seller in the country — it was disappointed with the deadline’s extension. However, the group said the number of complaints had fallen rapidly. During its half-year reports, the bank did not announce any addition to their PPI refund package.
The FCA would use a £42.2m advertising campaign to spread awareness of PPI mis-selling. Banks would fund the campaign to ease their expenses from scammers ripping off consumers with unofficial claims services.
Consumer groups still complain that the longer deadline is a band aid solution to the PPI crisis. They said banks need to simplify the claims process for faster transactions and avoid delaying or outright rejecting valid consumer complaints for payment protection insurance.
FCA Chief Executive Andrew Bailey hopes the deadline would draw a line under the scandal once and for all.