Banking industry’s huge bill for mis-selling PPI could rocket to £64billion after ad push by Financial Conduct Authority

THE banking industry’s bill for mis-selling PPI is set to soar by billions after an ad push by the Financial Conduct Authority.

The City watchdog will launch a £42million campaign on Tuesday as it seeks to draw a line under the mis-selling scandal that has cost banks £27.4billion so far.

As many as 60million policies were mis-sold to people with credit cards, store cards and loans.

Those who believe they may have been mis-sold PPI have until August 2019 to claim.

The claims industry believes just a third of eligible claims have been paid so far, leaving banks facing the prospect of huge payouts.

Last month, Barclay set aside £700m and Lloyds Bank another £1bn to pay for further compensation claims.

The bill plus interest could rise to £64billion, claims company We Fight Any Claim said, on the basis that 80 per cent of PPI was mis-sold.

Trade association the Professional Financial Claims Association said the bill could nudge £100billion if all claims are eventually made, far above the provision made by banks to cover their PPI costs.

PFCA chairman Nick Baxter said: “People don’t claim because they are turned off by all the adverts on TV or don’t know they have PPI.”

We Fight Any Claim’s average payout is £2,000 but some awards have been far higher.

The firm’s Mark Davies said: “Everybody should be prompted by the campaign to check whether they had PPI.”