Will There Be Another PPI Scandal?
The PPI scandal has dominated the UK headlines for nearly a decade. But with the deadline fast approaching, will there be another scandal of this scale?
The deadline for PPI claims is now just six months away. The 29th August is the cut-off date for all those wishing to submit a claim to their bank and find out if they’re eligible for a refund. But as the PPI scandal finally draws to a close, many are asking whether another type of compensation scandal could take the spotlight.
The Scale of the PPI Scandal
64 million PPI policies were sold in the UK. It’s not known precisely how many of these were mis-sold, but the answer is likely in the millions.
The PPI scandal has cost the banks billions of pounds. To date, the banks have refunded over £33 billion to customers, as well as paid fines to the Financial Conduct Authority (FCA) and towards the FCA advertisements for the deadline.
Mis-selling tactics from the banks included telling customers PPI was compulsory or claiming it would make them more likely to be accepted for the loan or credit card. In some instances, it was added without consent, and one individual even had her signature forged.
The banks have been refunding customers for over a decade. One of the main reasons the Financial Conduct Authority established the deadline was to draw a curtain on the scandal for good, as it hopes it will encourage those who have not yet made a claim to do so.
The banks are continuing to refund millions of pounds to customers until the deadline date.
Are These the Next PPI Scandals?
While it’s unlikely that any other financial misconduct will result in such an impact as PPI, there are numerous speculative articles about what could be the next big mis-selling scandal. Here are a handful of compensation claims that claims management companies could be turning to in the near future:
Leasehold Agreements — The leasehold scandal has plagued the property industry for many years, with individuals trying to fight the scandal that is leasehold housing. In recent years, individuals have bought property with a leasehold agreement — trapping them with extra fees and having a property that is never truly theirs. Thousands of people could be stuck in a leasehold and may be able to claim that they were unaware at the time.
Payday Loans — The number of payday loan claims has increased in recent years. In 2016, the number of complaints about payday lenders tripled over the previous three years. Last year, payday lender Wonga collapsed into administration, blaming this on the increase in payday loan claims.
Self Invested Personal Pensions (SIPP) — In the past two years, the number of people claiming for mis-sold pensions has doubled. In 2018, this equated to £40 million refunded to customers. Although it’s not close to the figure for PPI claims, it could be set to increase further. Many individuals were given poor advice about pensions, which could constitute as mis-selling.
Data Protection — When GDPR regulations were introduced last year, most companies made sure they were compliant and made relevant changes to their businesses. However, any data breaches could cause consumers to seek compensation.
The PPI mis-selling scandal was huge and it’s unlikely that another mis-selling scandal of this scale will affect so many consumers again. However, it’s possible that a select few circumstances could lead to consumers being due a large windfall.
The best PPI claims companies use Logican’s claims management software. This software helps companies to process as many claims as possible before the impending deadline.