Experts believe that due to a lack of discipline with banks and the entire industry, the Financial Conduct Authority (FCA)’s PPI claim deadline is only “in favour of banks” rather than protecting consumer interests.
In addition, the probes recalled against the industry would not find a proper solution to the regulation of financial product sales, which may lead to financial scandals similar to payment protection insurance mis-selling.
The experts said the statement on behalf of the increasing numbers of packaged bank accounts and store cards complaints.
Packaged bank accounts are products with added ‘perks’, which consumers pay for monthly. These include travel, health and other types of insurance policies. Consumers find the products useless because of duplicity. Consumers filed their claims after knowledge they were initially ineligible for the perks themselves.
Debenhams and other stores, who had sold credit cards with a payment protection insurance component, have to refund at least £5.7m worth of insurance refunds. According to analysts, representatives from GE Capital Bank, who sold the insurance policies, failed to inform consumers of an ‘opt-out’ box. Analysts also speculate they intentionally rushed the consumers to fill out their forms, thereby increasing their commissions.
Without clear regulation and proper observation of industry activities, the PPI deadline would only satisfy banks, who consumer groups blame to have begun the entire dilemma initially. Consumer groups are calling for banks to simplify their claims process to aid the elderly and helpless to reclaim their insurance repayments.