UK Payment Protection Insurance Claims Can Increase By £20Bn Without Deadline

New consumer campaign group Payback Time suggests through an investigation and hypothesis that banks can save £20bn on their PPI bills if the 2019 June deadline pushes through. According to the consumer group — citing data collected by YouGov — the trend of adding £1bn per quarter for almost every bank guarantees a £20bn loss for the UK consumer.

However, mediating service Financial Ombudsman Service estimates about 360,000 complaints coming in for 2017. The organisation had allocated its resources to prepare for the huge influx of claims they speculate the FCA’s deadline for 2019 — along with an M&C Saatchi advertising campaign — would cause in the coming years.

The UK banking industry will sponsor the £42.2m funding for the PPI awareness campaign, which the FCA collected through levies against 18 banks who have received 100,000 PPI claims since August 1 2009 to August 1 2015. The FCA has recently released £400,000 for M&C Saatchi to start designing the advertisement. Media buying group Manning-Gottlieb would also manage all asset buying needed for the campaign.

Consumer groups have heavily criticised the FCA for forcing consumers to make claims and not striving to make the claims process simpler. According to consumer group Which?, UK banks are the only ones winning from the PPI claims deadline.