Consumers mis-sold Payment Protection Insurance (PPI) have received £215m in refunds this year, according to the Financial Services Authority (FSA).
The cash was paid out by 16 unnamed firms, representing 92% of PPI complaints made between January and June this year. The payouts follow the dismissal by the High Court of the banks’ challenge to the PPI refund rules in April. In May and June alone, £102m was paid out to customers. The monthly totals for the first six months of the year were: £29m in January, £31m in February, £28m in March, £25m in April, £37m in May, and £65m in June.
Refund bill
A string of High Street banks have set aside cash to settle PPI complaints. Lloyds’ £3.2bn PPI refund bill is the largest of any UK bank. Barclays is setting aside £1bn, RBS £850m and HSBC £269m. The figures released by the FSA also included payments made after rulings by the Financial Ombudsman.
The independent body which rules on financial cases not settled by banks, has revealed it has received more than a quarter of a million PPI complaints in total, with a record 104,597 received in the last financial year. It said it had upheld three out of four complaints, with an average payout of £2,750.
Margaret Cole, interim managing director of the FSA’s conduct business unit said: “The treatment of PPI complainants has left an indelible stain on the financial industry’s record.”We remain 100% committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms’ progress to ensure this is done properly.”
Sally Bowyer, Managing Director of leading financial claims firm Brunel Franklin, said that consumers could recoup many years’ worth of premiums plus interest. “If you were mis-sold PPI, you may be entitled to several years’ premiums plus 8% interest, which can in some cases amount to several thousands of pounds.”
Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51