The financial sector paid out £215 million in refunds to victims of the Payment Protection Insurance (PPI) mis-selling scandal in the first half of the year. The industry returned £102 million in May and June after the British Bankers’ Association (BBA) lost its High Court challenge against PPI refund rules being applied retrospectively, the Financial Services Authority (FSA) said.
The figures, published to allow firms and consumers to keep tabs on the progress being made with refunds, are based on 16 firms, representing 92% of PPI complaints made in the six months to June. Huge levels of PPI redress are expected in the coming months as Lloyds Banking Group set aside £3.2 billion to cover refunds, Royal Bank of Scotland made a provision of £850 million, HSBC recorded a 440 million US dollars (£270 million) hit and Barclays allocated £1 billion.
PPI covers debt repayments if the holder is unable to work due to an accident or illness, or if he or she loses their job. The PPI mis-selling scandal is likely to be the biggest the UK has seen, with the final refund bill likely to dwarf the £4.5 billion paid to people who were wrongly sold personal pensions and the £2.7 billion paid to victims of endowment mis-selling.
The FSA pledged to publish monthly data on PPI refunds along with a running total.
Margaret Cole, interim managing director of the FSA’s conduct business unit, said the regulator would take action if it found firms were not refunding consumers.
“Making a refund application against a bank or other large financial institution can be a daunting prospect, which is why it is much better to seek help from an organisation like Brunel Franklin, rather than struggle on and be left to try and work out the details for yourself,” said Sally Bowyer, managing Director of Brunel Franklin. “We operate a no-win-no-fee service and there is nothing to pay until your case is successfully won and the vendor has paid out.”
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