Analysts estimate that UK’s banking industry needs to pay a collective £500m addition to the already-inflated £30bn bill for the financial scandal. Lloyds, the biggest mis-seller of PPI, is likely to add a hefty sum of £200m, possibly bringing its total to an estimated £18bn. High-street PPI mis-sellers HSBC and RBS may also post their addition to their respective PPI refund pools in the coming weeks.
UK’s PPI claim centres undertaking the task of evaluating and processing a complaint are facing immense strain due to the increasing numbers of enquiries after the Financial Conduct Authority announced the final schedule for the PPI deadline last March.
The FCA believes the two-year period before 29 August 2017 is enough to allow UK consumers to make their claim for refunds successfully. However, consumer groups said the deadline is unfair because banks have yet to improve their evaluation and process for refunds.
The Association of Claims Companies (ACC) released data it collected from several affiliated claims management company managers. It noted that many financial institutions had used the alibi of missing consumer documents drastically until April. The numbers have gone 70% from the same period in 2016.
The ACC said its organisation does not gain any economic advantage upon releasing the information, but it intends to expose the system that puts the UK consumer at a disadvantage in reclaiming the correct amount of refunds.