The banks can grab back more than £23bn in unpaid payment protection insurance compensation once the Financial Conduct Authority approves of the June 2019 PPI claims deadline. A report indicates that the £42.2m bank-financed PPI advertising campaign is just a small chunk of the possible £23bn PPI refund money banks can pocket after the deadline.
According to City AM, a new campaign group called “Payback Time” warns consumers that the proposal for a PPI deadline in early 2017 will limit the true figure of the PPI scandal. New proposals such as the £42.2m advertising campaign for the possible June 2019 PPI deadline is just a small amount from the total £23bn more the banks owe its customers.
Surveys by YouGove designed to help launch the Payback Time campaign found that people thought the government had not done enough to improve bank customer service and about half of the respondents said banks still need to inform consumers that less than half of the actual PPI refund amount is still unpaid to their bank employees’ victims.
The FCA has yet to finalise its planned deadline to the disappointment of banks. Consumer groups continued to condemn the PPI claims deadline mentioning that it was unfair for customers who were sold PPI for at least a decade. Currently, the UK bank industry’s total for mis-sold PPI is at £40bn with around £14 paid back to consumers.