Banks stand to pocket up to £23bn in unpaid payment protection insurance (PPI) compensation when new deadlines come in, a new campaign group has warned.
The group Payback Time was launched today to warn how new proposals to be announced in early 2017 are expected to limit what companies can do to expose the PPI scandal.
Under the new plans, the government and regulators intend to encourage banks to spend £42m on publicising the costliest financial scandal ever to hit the UK’s banks, which is just a small portion of the £23bn the banks hold in PPI redress funds.
Claims management companies on the other hand have invested £200m publicising the PPI scandal. Currently 80 per cent of successful claims are being made through these companies.