PPI is something that just won't go away at the moment. Banks gave up fighting the action for compensation last year, and in light of that they probably want to get the process of handling claims over with as quickly as customers do. The FSA has threatened fines if banks don't do more to inform customers about claiming on PPIs, but how much exactly has been returned to victims of the scandal so far?
It's estimated that the figure for the amount returned by the major banks in the UK is somewhere around the two billion pounds mark. It seems that the majority of that was given out last year. This year it's expected that a further four billion pounds will be returned. But this still isn't the total figure expected to be claimed by the FSA's predictions. In fact, Which? magazine estimates that only a quarter of the amount of compensation has been given out so far, meaning that the total will be more like eight billion pounds. In light of that, it's no wonder banks have reported losses this year.
The problem at the moment is less about the banks' willingness to repay customers, and more about middle men seeking profit at the expense of customers. People should be able to claim all of their PPI payments, plus interest, but often they're using claims companies that take a big cut of compensation. Instead they should be using the free government ombudsmen service.
The banks actually made around seventeen billion pounds on PPI. The discrepancy in claims paid out to total profits is because not all PPI was mis-sold. For some people it actually helped them get through difficult times. But in around one third of the cases the policy was given under false pretences.
The problems continue, and so do the headaches in how to get the money that's owed into customers' hands. Hopefully in the next two years it should finally be cleared up.
It's estimated that the figure for the amount returned by the major banks in the UK is somewhere around the two billion pounds mark. It seems that the majority of that was given out last year. This year it's expected that a further four billion pounds will be returned. But this still isn't the total figure expected to be claimed by the FSA's predictions. In fact, Which? magazine estimates that only a quarter of the amount of compensation has been given out so far, meaning that the total will be more like eight billion pounds. In light of that, it's no wonder banks have reported losses this year.
The problem at the moment is less about the banks' willingness to repay customers, and more about middle men seeking profit at the expense of customers. People should be able to claim all of their PPI payments, plus interest, but often they're using claims companies that take a big cut of compensation. Instead they should be using the free government ombudsmen service.
The banks actually made around seventeen billion pounds on PPI. The discrepancy in claims paid out to total profits is because not all PPI was mis-sold. For some people it actually helped them get through difficult times. But in around one third of the cases the policy was given under false pretences.
The problems continue, and so do the headaches in how to get the money that's owed into customers' hands. Hopefully in the next two years it should finally be cleared up.
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