The UK banking industry continues to sell payment protection insurance policies — this time to eligible customers — and continues to bring in profits from the product. Employees said that managerial pressure to sell higher volumes of the insurance may push further the likelihood of mis-selling to ineligible consumers. This premise and the fact that millions of consumers will fight to have their insurance policies reclaimed are the challenges awaiting the June 2019 PPI claims deadline.
The FCA has agreed to have UK advertising giant M&C Saatchi and advertising logistics Gottlieb Manning OMD to develop the public service announcements as part of its June 2019 PPI claim deadline campaign. Analysts view the efficacy of the campaign as probable but it will raise consumer awareness regarding payment protection insurance.
The UK banking industry has allocated more than £40bn to the refunding of mis-sold PPI. It is the biggest financial scandal in the United Kingdom’s history.
The Royal Bank of Scotland faces huge fines duet o issues surrounding its banking practices aside from payment protection insurance. Due to its selling of toxic mortgage securities before the 2008 financial crisis, RBS faces huge fines from US regulators. It owes more than £800m to settle lawsuits from its investors regarding its 2008 emergency rights offering.
With many issues in tow, PPI claims may continue further than 2019, sparking uncertainty over investors.