According to analysts, another possible scandal the scale of mis-sold PPI can likely happen because of the FCA’s lack of regulation enforcement.
It was due to this lack that mis-sold PPI had happened, said analysts. Bank employees were motivated to sell higher volumes of their products rather than see if the products fit the consumer’s needs.
The Financial Conduct Authority’s deadline analysts see as favouring only banks. The FCA’s withdrawal of three bank probes could initiate only another lack of enforcement leading to another gigantic scandal.
The statements come as the UK’s PPI scandal would come to an artificial halt by 2018 as the FCA launches an advertising campaign intended to encourage people to claim when they have yet to do so.
UK circulation had also focused stories on new mis-sold financial products including packaged bank accounts and store cards.
Debenhams and other malls who had partnered with banks had mis-sold PPI alongside their credit card. According to experts, Debenhams’ store cards was mi sold mostly by unscrupulous sales methods of GE Capital Bank’s retail assistants. The rush of filling out forms for consumers had them forget to check the opt-out of PPI option.
It is estimated that Debenhams may have to resolve £5.7m worth of claims within the year.