PPI refunds taper off despite claims deadline

ppi insuranceCompensation payouts to customers who were missold payment protection insurance have remained at their lowest since February, FCA figures show.

Data released by the regulator this week shows £383m was paid out in June, down from £403.4m in May and £398.3m in April.

The latest compensation figure is up £61m on June last year, but refunds are down £115m in refunds in 2012.

People who believe they were missold PPI have until August next year to lodge claims with the regulator.

The FCA began a two-year communications campaign featuring actor and former Governor of California, Arnold Schwarzenegger last August, paid for by the eighteen firms that got the most misseling complaints between 2009 and 2015.

FCA welcomes lenders’ pledge to help ‘mortgage prisoners’

Advertisements for the PPI complaint deadline are to raise awareness of the deadline and help people to decide what to do.

Last month, reports emerged that a court ruling could result in banks paying up to £18bn in compensation to customers.

Money Marketing also reports Lloyds has plans to bolster its provision for PPI and add £410m to its provision for April to June.

Commenting on the fall in payouts, Huntswood Resourcing managing director Steven Kitchen says: “This reduction should be viewed as coinciding with the end of the FCA’s second six week advertising burst which concluded in May.

“With two further advertising bursts scheduled ahead of the deadline in August 2019 and with the expectation that the final advertising campaigns will be the most assertive, firms should ensure they remain prepared for an anticipated uptick in complaints and pay-out levels as the deadline approaches.”

More than £31bn has been paid out to customers since the introduction of PPI complaining rules in 2011.

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