The Financial Services Compensation Scheme Chief Executive Mark Neale said that the FSCS’ research into PPI complaints still indicates that PPI has not yet reached its peak numbers even in the five years of PPI claiming. Neale said that the research was not able to indicate when will the UK reach the peak numbers, or when will PPI claims finally end.
Consumers trying to process their PPI claim back more than £2780, especially with banks, who recently were found to use a regulatory provision that allowed them to reduce the amount of refund consumers get.
The “alternative” or “comparative redress” clauses made it possible for banks to provide a regular-premium PPI instead of a single-premium refund to consumers in special circumstances. This clause had been used by Lloyds, RBS and Barclays. According to observers, it is highly likely the regulatory provision abuse may lead to higher numbers of PPI complaints.
PPI is a policy that repays loans, mortgages and credit cards in the event of sickness, accidents or unemployment. However, as every insurance has exceptions, many consumers, especially those with already-existing medical conditions and retirees, purchased the insurance policy.
To date, at least £28 billion is the current total of refunds UK banks had set aside.