The Financial Services Compensation Scheme (FSCS) forked out more than £204m in customer compensation last year – the bulk of which paid for payment protection Insurance (PPI) claims.
Two thirds of the compensation paid to 21,000 claimants during the year was for Payment Protection Insurance (PPI) and investment claims, its annual accounts showed today.
PPI claims have increased significantly during the year rising to more than 2,400 and the FSCS expects the numbers of claims in this area to continue to grow in 2010/11.
The surge in FSCS customer compensation has led to huge levys on brokers, despite little involvement in PPI, which led to Insurance Times launching its Fair Fees campaign.
The increase in investment claims came as a result of claims against brokers, many of these involved complex issues that the FSCS had to resolve.
It paid over 15,000 claimants, the majority of claims related to Keydata Investment Services Limited.
Over the year the FSCS also completed the validations of the amounts paid to fund the transfer of the depositors of Bradford & Bingley plc, Heritable Bank Plc and Kaupthing Singer & Friedlander Limited.
Recoveries of £1.06bn were made, which will be used to reduce the principal of the loans borrowed from HM Treasury for the bank failures of 2008/09.
The outstanding principal on the loans is due to be repaid from 2012; a repayment schedule will be agreed, based on market conditions, closer to the time.
The FSCS will also contribute to the cost of Dunfermline Building Society at the end of the resolution process, but the Scheme has made an initial provision of £400m based on the latest information available to it.
During 2009/10, the FSCS continued to work closely with the Tripartite Authorities to strengthen its ability to compensate consumers quickly in a wide range of eventualities.
This included working with the industry so that, from the beginning of 2011, the FSCS will be able to make payouts for deposit-taking failures within seven days. It will also launch a campaign in January to raise public awareness of the FSCS.
Mark Neale, FSCS chief executive said: “The FSCS achieved a huge amount in 2009/10. We completed a large number of claims, resolved outstanding issues from the banking failures, and made significant investment in response to the demands for faster payout and our increased responsibilities. The Annual Report and Accounts 2009/10 gives a detailed insight into the challenges the Scheme faced as well as its achievements during 2009/10.
‘The report demonstrates the vital service the FSCS provides to consumers and the benefits that it brings to the industry in delivering consumer protection and promoting consumer confidence.”
PPI Claims News
Financial Ombudsman receives 2000 PPI Complaints a DAY!
The Financial Ombudsman has reported that they are still recieving around 2000 PPI complaints per day. There has been a decrease in the number of PPI complaints made in 2013 vs the same period in 2012, but 2000 PPI complaints per day is still a significant number of complaints to be processed.
Tips on PPI mis selling : Martin Lewis
We came across a wonderful interview from Martin Lewis aka the Money Saving Expert on tips about PPI mis selling. We are bombarded with TV ads for PPI mis selling and telephone calls for PPI claims, but what does it all mean? Martin Lewis, the Money Saving Expert helps to explain the facts.
Maple leaf financial is a claims management company, NO we don’t cold call or create any mis leading TV ads, we are open and honest. Hey, when we get home we also have to put up with those anoying calls and TV ads and if you read our blog you will see us complaining as loudly as the next person.
PPI Complaints Mis-Handled, Lloyds Banks Admits
Lloyds recently announced that one of its centres specialsing in handling PPI complaints has produced obvious shortcomings. The announcement comes on the heels of discovering that a Times reporter went undercover at one of the bank’s notorious complaints handling centres.
Can i claim PPI….. AFTER….. IVA ?
New legal advice has come forward that could help UK residents involved in Individual Voluntary Arrangements (IVA) to make claims against banks that mis-sold them Payment Protection Insurance (PPI).
In a nutshell, individuals who entered into an IVA scheme may be able to make a claim if any accounts in the IVA bundle were covered by a PPI. The key here is that the claimant must be able to prove that the PPI was mis-sold by the lender.
Maple Leaf Financial will review your Individual Voluntary Arrangement (IVA) and we will be happy to discuss your individual concerns and requirements : 0800 7747624
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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