According to the Financial Conduct Authority, its advertising campaign starring the voice and animatronic head of Arnold Schwarzenegger has helped elevate the number of complaints up to 40% higher than in 2017. With the City watchdog’s 29 August 2019 deadline looming closer, the PPI saga is coming to an end.
The UK’s bank industry has worn the shame of the scandal since 2009 after Which? had filed a collective complaint against the industry for swindling customers to sell single-premium PPI to ineligible consumers. The scandal involved almost every UK bank and millions of UK consumers. The UK Supreme Court decided to use a PPI claims process overseen by the City watchdog.
Today, the industry has paid out more than £30 billion in refunds to consumers with £10 billion earmarked for release. The figures indicate it as the biggest financial scandal in the history of the country.
With the PPI saga drawing to a close and banks becoming progressively cooperative with resolving claims in a proper fashion until the deadline, fund managers have become optimistic about bank industry investments as the uncertainty PPI claiming has imposed the deadline will effectively lift soon.
The FCA’s extended powers allow it to monitor factors that could trigger another widespread financial scandal and clamp down on the practices before things once again get out of hand.