Consumer groups viewed the FCA as the banks’ lackey after announcing the PPI claims deadline for 2019. The August deadline would cut off all consumers unable to make a complaint for refunds from mainstream help; banks and the FOS are still to answer and resolve all consumer complaints. By leaving out the PPI crisis from the mainstream, the UK’s banks can begin implementing policy.
Lloyds and Barclays added £700m each to both banks’ compensation bank. The UK’s biggest financial crisis still shows no signs of stopping. UK consumers still have yet to make their own PPI claims. The FCA believes the deadline would encourage making a PPI claim as soon as possible.
The PPI crisis has gripped the UK for over 10 years. It was first reported in 2009. The UK’s total bill of £38bn stretched for over a decade.
The FCA’s deadline allows banks to rebuild their capital. It also strengthens the implementation of BoE’s policy passed to its banks. The FCA’s deadline is not in support of the action of banks. However, it does not improve the attitude of banks specifically in areas of profit limitations. The PPI crisis began with sales employees urged to make a sale through rewarding incentives for higher work volume.