Let’s Talk Numbers – PPI in Figures!
Whether or not you have a claim for compensation, and regardless of whether you choose to claim your money back or not, there is no doubt that some of the figures involved in the mis-selling of payment protection insurance (PPI) leads to some serious eye-watering…
The London Summer Olympics cost far less to host that the current combined PPI compensation pots of all the banks and lenders. Currently, at the start of 2016, the compensation stood at £22 billion. It cost £12 billion to host the Olympic Games in the summer of 2012.
At the start of the year, several banks announced they were adding more money to the PPI compensation funds with many of the smaller banks, building societies and lenders suggesting that they expected that this top-up would be the last.
We’ll wait and see.
The PPI saga has been running for many years now, with many banks worried about the open-ended nature of the compensation claim process.
But, it took many years to get the point where banks and lenders were ordered to compensation customers. The selling of expensive PPI was raised in Parliament in the mid-1990s. This was followed by an investigation by the now defunct Competition Commission. This agency examined whether trading conditions were fair.
They found that the selling behind PPI was unfair and thus set forth a whole set of reviews, judicial reviews, counter claims and so on. It was 2005, some 6 years later, before people started to get their money back.
But not all banks are awarding compensation to customers for mis-sold PPI, even when the customer is entitled to their money back. As a result, many customers referred their case to the Financial Ombudsman Service (FOS).
FOS is an independent body that looks at complaints or issues between financial institutions and their customers. They do not just deal with PPI but all kinds of financial products and financial mis-selling. They are taking around 12 months or more to work through the backlog of PPI complaints brought to them by customers.
Even though the wholesale mis-selling of PPI is a ginormous embarrassment for the British banking industry, it has spawned two new mini-job markets – claim management companies and the thousands of people being employed by banks and FOS, to deal with PPI compensation claims.
When you submit a PPI complaint to you bank, they must make some kind of response to you within 8 weeks. Customers with straightforward claims for PPI, find that they case is resolved and compensation received within 12 weeks or less.
Find out more PPI numbers by calling Payment Protection Scotland today!