The latest reports that banks and lenders have increased the funds available for repaying mis sold PPI to over £18billion – a truly staggering amount – simply serve to confirm that this is a scandal that has not gone away. Indeed, many more people are making claims as the public becomes increasingly aware of the right to get back the fees on mis sold policies. The Financial Ombudsman, which deals with disputes between lenders and consumers, has reported a slight decrease in the numbers of people claiming, but still handles over 2000 cases each day.
Biggest Scandal of All Time
The payment protection insurance (PPI) scandal has been called the worst of all time to hit the UK finance industry, and rightly so: over a course of many years, several million people were sold policies that were either of no use to them or that they did not want, and a recent ruling by the High Court means all fees on so-called mis-sold PPI policies must be repaid to the customer. With the three biggest banks in the UK – Lloyds Banking Group, RBS and Barclays – heading the list of names involved it is clear that mis-selling has been widespread throughout the industry.
Calculating the Payment
The average PPI payment is currently around £3000, but there have been many that were considerably more; the amount in each case is determined by the individual circumstances, as well as the size and type of credit agreement concerned. The added awareness that has come with all the publicity has led to many people using websites with an online PPI calculator, such as PPI Claims Advice Line to get an idea of how much they may be awarded. This is a convenient way of an advance warning, but must only be taken as an estimate.
An Ongoing Saga
One notable aspect of the scandal has been a fall in confidence on the part of the consumer; the man on the street no longer trusts the financial industry after discovering it has been selling products outsidethe regulations. It remains to be seen how – or if – this can be restored any time in the near future.