PPI mis-selling cases are increasing in the UK like anything. Therefore, banks out there are now very busy in arranging compensation amounts for them. Since the refund amount for PPI claim is huge therefore it has directly affected UK’s financial condition badly.
But if the refund is not made on time then the banks will automatically lose the confidence and trust of many potential customers. Keeping this in mind, banks have agreed to pay off the refunds but they set a specific time bar within which the claim applications need to be submitted for receiving necessary refunds.
Impacts on UK banks due to time bar restriction:
Deadline has definitely given a breeze of relaxation to the banks. In fact this policy has helped banks to tackle the cases of PPI claim in a much better way. PPI claims have already created a huge dissatisfaction in the minds of many customers. In fact, the overall scenario says that customers have completely lost hope on Britain banks.
This is the reason banks have decided to give back the refunds for re-gaining customers; trust. But these customers have become much skeptic and paranoid as they think that this kind of mis-selling might happen in the near future as well. This is because it is the PPI claims that helped Britain banks to gather or accumulate a huge amount from customers.
For controlling this mis-selling in the UK, FCA is now keeping a keen eye over the bank activities. In this way not only customers can be saved but banks’ reputation can be protected as well. This year huge refund amounts have been released by all banks in the UK and this should be treated as the best lesson that not to sell any financial products to customers in an unfair way.
Due to these refunds UK economy has also been adversely impacted and this is also a severe warning for the banks operating at the place. Released refunds have also made difficult for the banks to bear their day-to-day operational costs. Moreover, banks’ reputation has been badly shattered due to PPI mis-selling in huge numbers.
Therefore, banks are recently concentrating on the effective promotion of PPI awareness so that customers can learn about the concept and can stay away from mis-selling in future. This is the way by means of which banks are trying to restore their shattered reputation in the market. The banks are also stretching their hands to assist all those victims who have been affected by this mis-selling.
Banks are now taking additional precautions while selling out their financial products in order to prevent mis-selling. Increased vigilance is the only benefit that has been received by banks from the mis-selling cases of PPI claim. This vigilance is definitely helpful in keeping the banks away from PPI scandals.