It looks like the insurance mis-selling fiasco is one mistake banks are not even close to hearing the end of yet.
The Times said banks are likely to shell out another £500 million amid further claims before the August 2019 deadline.
According to the report, the bill to compensate those who were mis-sold payment protection insurance (PPI) could rise – with Lloyds forecast by UBS analysts to up its expenditure by another £200 million (to reach almost £18 billion in total), and the likes of HSBC and Barclays also expecting significant additions.
There has been a spike in the number of claims following the Financial Conduct Authority’s (FCA) deadline announcement last March. The FCA will be running a two-year consumer communications campaign starting next month.
Earlier this year, FCA chief executive Andrew Bailey said: “Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off.”
The FCA believes two years is a reasonable time for consumers to decide whether they wish to make a complaint. Final rules and guidance related to how firms should handle complaints have also been made.
Related stories:
UK banks could be hit with £1 billion in extra PPI costs
Lloyds takes £350 million hit from mis-sold insurance
