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PPI redress hit £1.9bn in 2011

Firms paid out £1.9bn in payment protection insurance redress last year, the latest figures from the FSA show.

Payments hit £441m in December 2011, the largest month yet for PPI payouts.

The Financial Ombudsman Service says it is currently receiving 1,000 new PPI complaints every day, the majority of which relate to PPI sold by banks, attached to credit cards and loans.

It is currently upholding around three out of four cases in the consumer’s favour with the average compensation £2,750.

But Which? executive director Richard Lloyd says the amount banks are paying out is not good enough and he is calling for them to speed up their payouts.

He says: “It’s good to see the PPI payout is finally starting to speed up but last year’s compensation of £1.9bn is less than a quarter of what lenders expected to refund.

“Too many people are still finding the claims process too lengthy, the banks must streamline the process to make it easier for people to claim.

“Otherwise this leaves an open goal for claims management companies that charge people a hefty fee for putting in a claim which is easily done yourself for free.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. So where’s the fines from the FSA or banning orders or even criminal procedures because if this was an IFA firm or small mortgage broker there would be action taken. This is fraud on a massive scale and we have NO ACTION TAKEN.

    After all the reclaim the bonuses is a drop in the ocean compared what these guys have been paid in the past. BANNING ORDERS PLEASE!

    You will only change behaviour of the major banks if the above action is taken.

    SET SOME EXAMPLES FOR GOD SAKE!!!!

    or do the FSA only do that to IFA’s

    Treat all in the industry fairly and face the same punishments even if they work large organisations.

    Just because you work for a large organisation does not make you immune to prosecution or enforcement action from the FSA.

  2. Question to the FSA

    Where the BANNING ORDERS for Bank Directors for the largest financial fraud on the general public!!!!

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