Banks still have £10 billion to be claimed
With just weeks to go before the PPI claims deadline on August 29th the Financial Conduct Authority (FCA) has told potential claimants that Britain’s banks still have £10 billion available to pay successful claims.
As lenders continue to pay out an average of £⅓ billion a month, a spokeswoman for the FCA told The Mirror: “So far, £35.3 billion has been paid out in compensation, with major banks having set aside another £10 billion or so for future claims.”
Millions more set aside
The banking industry has been continually underestimating the amount needed to pay successful claims as thousands of new complaints a week continue to flood in as consumers race to beat the deadline.
Lloyds Banking Group (LBG) added another £100 million to its already staggering £19 billion compensation fund in May and this month they were followed by UK Asset Resolution – the government quango looking after claims against Northern Rock and Bradford & Bingley – who added £64 million to their provision.
Time is running out
In the words of FCA spokeswoman Emma Stranack: “Time is running out to claim back money for PPI. Simply put, if you haven’t complained to your provider by 29 August 2019, you won’t be able to claim money back for PPI – so you should make your decision as soon as possible.”
Arnie Schwarzenegger was re-activated by the regulator for one last push, urging people who have yet to make their claim to ‘DO IT NOW!’
Don’t let confusion stop you claiming
Consumer champion Which? has expressed concern that some people could miss out on reclaiming money which is rightfully theirs because they are confused about the claims process.
A survey of over 2,000 people revealed a widespread lack of knowledge and awareness of how to go about making a claim and they don’t fully understand either the mis-selling or claiming processes.
Employing nine simple true or false statements, researchers found that the majority of people gave the correct answer in just two cases:
- If I make a claim for a specific product my lender will automatically check all the other products I had with them
- I can ask my lender to access the personal information they hold on me to check if PPI was sold on any of my products (e.g. mortgage, credit card, loan)
- The claims process requires me to complete every question on the form
- I can make a claim for mis-sold PPI on behalf of a deceased relative
- I can take my claim to the Financial Ombudsman Service (FOS) even if my provider says I can’t
- 6. I cannot make a mis-sold PPI claim if I live overseas
- 7. If FOS has rejected my claim the only thing I can do is go to the small claims court
- 8. I cannot make a claim if my provider has ceased trading
- 9. I can claim back tax automatically taken off the compensation I received for a successful claim
Where will all the money go?
The mis-selling of PPI has grown into possibly the biggest financial scandal Britain has ever seen and the final curtain is due to come down with the claims deadline at midnight on August 29th.
But what will happen to any money not reclaimed when time runs out? Are the banks just going to put up the shutters and move on to making more profits, knowing they could still owe thousands of people refunds for millions of pounds wrongly taken from them in a scandal that was three decades in the making?
The best estimate the Financial Conduct Authority can give for the number of PPI policies sold is around 64 million and the best estimate for the number of mis-selling claims made so far is around 20 million.
Latest FCA figures show more than £35 billion in compensation has already been paid out and while it is obvious that not all of the remaining policies were mis-sold it is likely that many of them could have been, meaning that many millions of pounds would still be owed.
The banks know they have mis-sold PPI to their consumers in the past, so is it fair that so many won’t get to find out if they are owed? What has happened to the FCA’s directive that customers should be treated fairly?
Britain’s finance industry has been investigating PPI mis-selling for more than 10 years now since the first rumblings of discontent in 2007 which must have made them well aware of the level of their mis-appropriation of their clients’ money.
It might not be theirs to hang onto and isn’t it about time that they started to treat their customers fairly as the FCA insists they should and pay out compensation without forcing their customers to make a claim to find out if they are rightfully owed?
Or perhaps it’s time for the FCA to force them to do so.