The sheer scale of the payment protection insurance (PPI) claims scandal is illustrated by the recent report that the total payout to consumers has now surpassed the £10billion mark across all the associated lenders. The figure was reached in April, 2013, when – in that month alone – over £420million was paid out to consumers claiming back mis-sold PPI fees. The Financial Conduct Authority (FCA) issued the figures with a proviso stating that the final amount will be far in excess of the amount reached so far.
24 Firms Involved
Although there are more than 20 firms involved in the PPI mis-selling scandal the majority of complaints refer to three of the biggest names in the consumer finance world: Lloyds Banking Group, RBS and Barclays are the major players in the saga, and have so far set aside billions of pounds in order to pay back the fees on mis-sold accounts. The move followed an instruction by the High Court that the lenders must pay back all such fees, and the resulting rush to claim has led to banks and lenders needing to take on outside help to process the claims.
Earlier this year the FCA held talks with industry leaders about the possibility of imposing a deadline for mis sold PPI claims; while many were in favour, others were against the idea, as they believed it would simply lead to a further rush of claims that would place a heavy burden on the already over-stretched claims procedure. Some banks, including Lloyds, have already been fined for delaying PPI compensation claims, and the Financial Ombudsman is dealing with record numbers of complaints pertaining to PPI claims and other financial gripes.
Using a Claims Company
The widespread publicity regarding the scandal has led to many consumers choosing to use a PPI claims company such as the PPI Claims Advice Line to pursue their claim, and this can be an efficient method of getting compensation. With many more claims to come and no sign of things slowing down, the lenders are bracing themselves for many more months of dealing with PPI claims and trying to restore consumer faith in the financial industry.