Banks pay out £215m in PPI redress
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The total amount of compensation paid out during the first half of the year to customers who were missold payment protection insurance has reached £215m, figures from the FSA reveal.
The regulator has published data today which shows that 16 firms have paid a total of £215m in PPI redress between January and June this year. The redress has mainly been paid by banks representing 92 per cent of PPI complaints received in the first half of the year.
The remaining 8 per cent of complaints are split across around 400 smaller firms.
A judicial review brought by the British Bankers’ Association challenging the FSA’s PPI redress measures was dismissed by the High Court in April.
Following the ruling, the figures reveal that £102m was paid out in PPI redress in May and June alone, with £37m paid out in May and £65m in June.
The half-year figures include ex-gratia payments made to complainants and cases settled by the Financial Ombudsman Service.
FSA interim managing director of the conduct business unit Margaret Cole (pictured) says: “The treatment of PPI complainants has left an indelible stain on the financial industry’s record. By releasing these figures we’re providing a useful measure of firms’ progress that can be tracked on an ongoing basis.
“We remain 100 per cent committed to ensuring that where consumers were missold PPI they will receive the appropriate redress from firms, and we are monitoring firms’ progress to ensure this is done properly. Where we find this not to be the case, we are not afraid to take tough action.”
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Readers' comments (2)
Anonymous | 30 Aug 2011 1:02 pm
Excellent progress indeed. Let's see a similar rigorous and inclusive process developed on the so called "100% principal protected / capital guaranteed / " structured product scandal as well.. The financial services industry does not need continued misselling scandals - and this approach should result in a far more rigorous and open approach in future, to the benefit of clients and product promoters alike
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Anonymous | 30 Aug 2011 3:00 pm
I agree, I just resigned from one of the big retail banks. Structured product sales will be another PPI timebomb. Banks are constantly trying to sell innapropriate products due to sales targets, when will the banks realise that they should concentrate on service and not product pushing. When banks factor in costs (Compliance, FSA fines etc) how can they make any profit on giving advice?
Advice in banks is sales, compliance run the retail operations in order to protect the bank not the consumer. Retail banks should not be allowed to give advice.
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