The enforcement of a deadline on PPI refunds has been a topic of much interest and controversy in recent months.
The prospect of a deadline was originally proposed by the Financial Conduct Authority, and was welcomed by banks, who are eager to put a deadline on the claims. It has been discussed that the deadline will be announced this year, and clients will not be able to claim back any PPI which was mi-sold to them as of Spring 2019.
However, the prospect of the PPI claims deadline is causing a lot of controversy, as figures suggest that less than 25% of claims have actually been received by clients, meaning that the majority of clients who have been mis-sold PPI could still be unaware of the money they are owed.
Despite having supposedly set aside mass amounts of money to pay back clients who had been mis-sold the product, the banking industry are very keen for the deadline to be enforced.
So, considering that banks have suggested they have provisional funding, and surely would want to do everything possible to recover their reputation after the scandal, what are the real reasons for encouraging the PPI deadline to be enforced?
One of the major reasons the banking industry is so avid for the PP refund to be enforced is because of the savings they will make by avoiding paying back these refunds. It has been suggested by the campaign group Payback Time that banks stand to save up to a very substantial £23 billion in unpaid PPI refunds.
Another reason for banks to encourage the PPI refund deadline is that it may be a chance for them to finally rebuild their capital in a reduced time span, according to the term of the Financial Conduct Authority.
On top of this, the pound sterling is currently weak, meaning that banks’ main sources of income loans and mortgages are not as fruitful. This means that banks are even more desperate for the deadline to be put in place.
With the economy and the banking industry to consider, the deadline is looking more and more likely to be enforced. If you have any reason to believe you may have been mis-sold PPI, it is important to act quickly to ensure that you receive the money you are rightfully owed.
With a likely deadline looming, it is now more important than ever to begin your free check to see if you are owed PPI. The process is easy; it is well worth checking, and you could receive a large repayment.