Everyone must admit; payment protection insurance deserves to end. However, it must be done finished with banks and the government upholding fairness instead of favouring banks due to their difficulties and their need as financial institutions.
According to analysts, the Financial Conduct Authority is leaning towards the bank industry regarding the deadline. Should they approve, they would need to ensure these three things can happen.
The Simplification of Procedures
Banks have begun the mis-sold PPI scandal and they have given gateways for scammers to swindle money off of unsuspecting consumers. The promise of refunding consumers quickly isn’t enough.
Observers believe that banks should simplify the process of claiming refunds for both sides. Banks must be capable of investigating a claim thoroughly while ensuring the refunds would arrive to consumers at the target time.
Initiative on Consumer Awareness
The regulator and the industry must work together to ensure consumers are aware they could reclaim payment protection insurance from banks.
The FCA said banks would fund about £42.2m in advertising represented by regulators themselves to encourage consumers to make a claim. Regulators still appear as reliable and trustworthy for consumers.
The campaign must not only be limited to television but must also reach emails, social media and even online advertising campaigns wherever traffic is involved.
Banks who could not keep up with the new requirements should be ‘named and shamed’ as per former practice of the FCA during the era of former Chief Executive Martin Wheatley.
Banks who conform to the needs of the situation should receive incentives. As long as the procedure is smoothed out and all involved conform to the rules as needed by the situation, the PPI process can flow and execute in a simple manner until its deadline in 2018.