Consumer groups continue to call on the FCA to extend or thoroughly abandon the upcoming 2019 PPI deadline because they believe the banks will not play fair.
Indeed, this may be the case as the independent Financial Ombudsman Service had found that UK banks had turned down 9 out of 10 legitimate PPI claims.
Most of these complaints are from high-street bank customers. The consulting body would then overturn the banks’ decision in the customer’s favour. UK’s biggest PPI mis-seller Lloyds Bank faces the largest ratio of overturns with 7 out of 10 complaints ruled in favour of consumers.
In the first half of 2016, the FOS had received more than 91,381 complaints about payment protection insurance. The Ombudsman claims it is slightly lower than the approximated 92,000 PPI claims it received in the second half of 2015.
James Daley, managing director of consumer group Fairer Finance, says: “It’s astonishing the PPI problem has been going on for so long, yet firms are still getting so many complaints wrong.”
The UK banking industry has suffered a massive blow of £37bn in losses due to payment protection insurance refunds. About half of the amount banks have returned to consumers.
As consumers become more aware of their rights to claim payment protection insurance, more claims may come in the following months. The peak of PPI claims may again happen by the second half of 2018.