The City Regulator has warns banks with heavy fine

In light of a landmark Supreme Court decision in 2014, The Financial Conduct Authority (FCA) has ordered banks to review old claims before the August 2019 PPI deadline.

The City Regulator has warned banks that if they fail to cope with the influx of new Payment Protection Insurance (PPI) claims they will receive a heavy fine.

PPI, the UK’s largest financial scandal, was introduced to cover customers with loans should they struggle to cover loan repayments due to the inability to work from job loss or being too ill to work. However, many banks sold PPI to customers who didn’t need it.

The FCA has reported that an estimated 64 million Payment Protection Insurance policies were sold to around 30 million customers between 1990 and 2010. Financial Institutions have already paid over £30billion in compensation with Lloyds Banking Ground contributing around £17billion.