Payment protection insurance (PPI) has now cost the Big Banks £8.8 billion. This is the total paid out by the Banks in PPI claims compensation to date. This PPI Claims bill is expected to reach £10 billion and possible exceed this.
PPI Claims Costing Banks £ 10 billion
The stories published today go on to say that administartion of these claims has already pushed this figure higher then the £ 10 billion mark and that ‘negligent’ claims are taking up time and pushing these costs even higher.
in our story published last week Banks have already started to increase their PPI provisions for the second quater and we will update these as we recive them.
In the press today :
Lloyds Banking Group, which has been hit the hardest by the scandal, has increased its provision for compensation to £4.3 billion, while HSBC has set aside £1 billion.
The total for the ‘big five’ – Lloyds, RBS, Barclays, HSBC and Santander – has now reached £8.8 billion, with claims still flooding in.
Consumer group, Which? has warned that PPI mis-selling is set to become the biggest financial scandal of all time.
It is calling on the government to tackle the problem of unscrupulous claims management companies, who send in compensation claims without checking if they are genuine.
Which? chief executive Peter Vicary-Smith said: “These latest figures from the banks show that PPI is now on course to become the biggest consumer financial scandal of all time, exceeding pensions mis-selling and the endowment mortgage scandal.
“The banks must make it straightforward for people to reclaim PPI themselves, for free, so they don’t resort to expensive and unnecessary Claims Management Companies (CMCs).
“We now need the Government to raise its game too, and toughen up the regulation of unscrupulous CMCs who are exploiting consumers who just want to claim back what is rightfully theirs.”
The Financial Ombudsman Service received 32,445 new complaints about PPI mis-selling between April and June, with an average of 1000 new PPI complaints being received every day.
The PPI Reality
I do not understand how Which? can say that CMC’s send in claims without checking they are genuine.
Individuals and CMC’s working on behalf of clients do not initially send in claims, they request information based on the person / clients account. This will have to be done by an indicvidual PPI claimant or CMC, to see if PPI was attached to their financial product.
It would then only be ‘negligent’ if once recieving the information they then proceeded to file a PPI compensation claim, unfortunatly Which? fails to mention figures in this respect.
A little clarity can be shone on this. In a recent article the British Bankers Ass says that in the last 6 months 22,000 ‘negligent’ claims were submitted to their memebers, this is against the 900,000 PPI claims that were upheld.
So is there a big problem, or not.?
The second part to this which is not mentioned, is that they say that it is easy for an individual to claim on mis-sold PPI. To do this a PPI claim needs to filed with the FSA. Last month the FSA admitted that it would take upto 4 yrs to handle all the complaints filed.
We do not dispute that some CMC’s may file ‘negligent’ claims but these should be easily checked.
Was PPI attached ?
How was it sold / attached ?
Two very easy things to determine.
Payment Protection Insurance (PPI) News
Barclays PPI Complaints: 1,500 Per Day and Rising
Years after the controversial financial instruments have ceased being issued, PPI complaints are still flooding into the Financial Ombudsman Service each and every day, and current and former Barclays customers are leading the charge. In fact, the latest report states that the large financial institution receives more than 1,500 complaints every single day.
PPI Claims – Leicester, UK
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of payment protection Insurance (PPI) products by the banks in Leicester. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
Interest Rate Swaps: RBS exposed to new swap mis-selling
Investec reports that RBS is likely to be the next bank exposed to interest rate swap claims from mis-selling and should be putting extra provisions aside for likely calls for swap compesation.
After the FCA set up the interest rate swap rate redress scheme with the banking sector, only 10 claims have been compensated so date.
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
Latest posts by Tim Capper (see all)
- PPI Claims Currently Show No Sign of Slowing Down - December 10, 2014
- Swaps (IRHP) Determining the Level of Redress - November 3, 2014
- FCA updates PPI redress for 2.5 million old PPI complaints - October 27, 2014