U.K. lenders face at least a further £22 billion in paymentprotection insurance redress repayments, the Financial Times reported April 4,citing Nick Baxter, chairman of the Professional Financial Claims Associationin the U.K.
Data published by the U.K. Financial Conduct Authorityshowed that about £23 billion in claims for PPI mis-selling has been repaidsince the beginning of 2011, but Baxter said that almost half of the amountrepresents statutory and account interest. "If 75% of PPI sales weremis-sold, which history already shows is a conservative estimate, there is atleast another £22 billion to be repaid to consumers," he reportedly said.
An estimated £44 billion in PPI policies were sold in thecountry between 1990 and 2010, the report added.
The U.K. FCA is considering imposing a deadline on customersseeking redress for PPI mis-selling, a move Baxter disapproves of."Financial institutions are still putting too many barriers in front ofconsumers who make legitimate complaints. Such firms should not be rewarded forsuch bad behavior with an artificial cap on their responsibilities," hereportedly said.