Payment protection insurance had become the boom and bane of the UK’s financial industry. Following the report of millions mis-sold the insurance policy through unscrupulous means, banks have suffered immensely for almost a decade paying for mis-sold PPI claims. However, with the FCA’s 29 August 2019 deadline looming closer and the increasing PPI claims, it is inevitable that the financial scandal is about to end.
Income fund managers are looking positively at the performance of the sector. According to Old Mutual UK Equity Income Fund manager Ed Meier, they’re anticipating the end of claims. He adds that PPI is “a hindrance” that limits “significant yield growth from the banks.
The industry’s massive PPI scandal has plunged it into deep financial troubles with the scandal earning over £40 billion in refunds, compensation, and administrative costs. The sector has returned over £30 billion to customers mis-sold PPI since 2011, according to the FCA.
The FCA has worked with banks to set up a suitable deadline date. To make sure each banking customer is informed of their mis-sold insurance policy, the FCA used bank levies to fund a £42.2 million advertising campaign featuring Hollywood’s Arnold Schwarzenegger and his bizarre, animatronic head urging customers to “do it now” and “make a decision” on claiming their refunds once and for all.