How PPI changed the banking landscape in the UK
They say that our of adversity triumphs a better way of doing things and this is certainly true when it comes to banking industry here in the UK.
Many people still believe there is a lot more that needs to chance but the wholescale mis-selling of payment protection insurance (PPI) has shown that the consumer is no longer willing to stand poor conduct from the banks.
But it seems that the banking industry is changing again.
Is there a deadline on the horizon?
The possibility of a 2018 deadline for PPI claims has made some people sit up and take note of what is happening with the banks.
The Financial Conduct Authority (FCA) know seems to have a more conciliatory tone to their dealings with the banks which some argue is undermining the consumer and their rights. The FCA, predictably, are saying that this is not the case.
They point out that many of the banks, such as Lloyds Banking Group and the Co-Op Bank, have faced hefty fines and penalties for not only mis-selling PPI, but also dragging their heels on making payments to customers.
The formation of the FCA also means that the banking industry should no longer be able to get away with something as big as mis-selling PPI, and not for as long either. This is because the FCA has ‘teeth’, and that they are not frightened to use them. This, the FCA say, has been proven in recent years.
They know feel that the banking industry is taking note, not just of what they are saying but what their customers are saying too. Now is the time, says the FCA, for a gentler tone and a need too, to draw a line under the whole PPI mis-selling saga.
In favour of the consumer
They argue that this is in favour of the consumer as the banks will be able to get back to concentrating on the main part of their business. They also say that they feel many customers who have claims for mis-sold PPI are gripped by apathy and thus, this deadline will spur people into action.
Some detractors say that a deadline will cause the banks to drag their feet once again on PPI claims, thus refusing to compensation people as they say their case is after the deadline. But, the FCA argue, this will not happen as they will not allow it.
The 2018 PPI deadline has yet to be proposed, with the FCA consulting on its possible implementation. In the meantime, if you think you have a claim for compensation for mis-sold PPI, make your claim as soon as you can!