Recent news coverage has indicated that the banks could be facing a further £5bn in ppi reclaim bills, owed to the residents of Britain that have been victims of payment protection insurance mis-selling.
Britain’s largest financial corporations and banks are planning to set aside billions more for compensation provision as the financial regulator prepares to implement a two-year deadline for claims.
Influx of PPI Claims?
It is expected that as a result of this implementation of a deadline, and the coming announcement of new provisions set aside for the UK consumer, will spur on an influx of new payment protection claims, giving the victims more reason (urgency & extra provision) to begin their claim.
It is estimated that more than 60% of people that have been miss sold have still yet to claim their compensation.
Online resources such as this ppi calculator are designed to help the process of claiming compensation much easier because the website enables people to receive an estimate as to what their potential claim could be worth to them, in addition to quoting them a no win no fee costing for the work carried out (it also tells them if they have a valid claim, ppi calculator websites are useful for both these reasons).
The news regarding the provisions is expected to be announced in the coming days with the corporations very keen to put the ppi claims scandal behind them due to the heavy financial losses that they have incurred over the last 10 years due to refunding the British public for miss sold ppi.
The deadline is expected to come into being in the coming months, meaning that the British public will be made very aware that they have until around spring 2018 in order to claim their compensation if they are found to have been a victim of mis-selling.
The ppi scandal has been labelled “the biggest mis-selling scandal that the UK has seen” and as a result has cost the British banks billions in payments out to the public, plus statutory interest rates of 8%, plus any charges levied, this has hit the banks hard and there is no doubt the sooner this crisis is over the better for them.
With the average refund being somewhere in the region of £2,750 the prospect of having to refund another few million citizens is going to affect the banks’ income announcements and other representations of earnings, with one bank (that shall not be named) even resorting to a rebranding.
With the regulators’ acceptance of a new deadline, there seems to be light at the end of the tunnel as the scandal wears on with a maximum of a further 2 and a half years being the remaining time left for the scandal.
The consumer will also breathe a sigh of relief from not being hounded by companies that cold call them in order to get them to start a claim, often those companies are much more expensive that the ones you can find online, its advisable to look at multiple companies before a claim is begun for the best compromise between price and service.