Payment Protection Insurance (PPI) is one of the biggest banking scandals there has been. Billions of pounds have been put aside to deal with the backlash of claims. In March 2017, the Financial Conduct Authority (FCA) imputed a deadline for anyone to claim. This PPI deadline is set for two years’ time; you will now have to make your claims before 29th August 2019. The FCA are going to run a two-year public awareness campaign starting next month, to attempt to clear this scandal.
What is PPI?
PPI was designed to cover the loan repayments if someone lost their job or fell ill. However, many were mis-sold this insurance due to them not knowing they took it out, or were not eligible to claim it if they needed to. From 1990, banks were mis-selling PPI, and so the grand scheme of the scandal was huge. As this outbreak has been going on for many years now, the FCA have decided to put a PPI deadline on it to encourage people to check whether they have a claim and to draw a line under the whole scandal to move forward without it looming over banks.
How are banks coping with this?
The Times have stated that they believe banks are likely to receive a further £500 million worth of claims before August 2019. There has already been a spike in claims since the announcement was made in March this year. This will make it a total of around £25billion worth of claims which the banks have had to compensate to the public since the outbreak started.