Over the years millions of people have claimed back mis-sold PPI. Our new research suggests the money banks have allocated for compensation is set to run out. We need banks to confirm more’s on the way.
Our Convo commenters will know that, here at Which? HQ, we’re rather fond of our facts and figures. Interestingly banks have confirmed how much they’ve set aside to deal with the fallout of mis-selling payment protection insurance.
We’ve been keeping a running log of theses figures, cross-referencing this with the number of complaints received on PPI and the money that has so far been paid out.
PPI complaints double as compensation runs out
Figures released by the Financial Services Authority today show that PPI complaints have more than doubled to 2.2m in the first half of 2012. Now our analysis suggests that if payouts continue at the same pace, some banks could run out as early as November 2012. Lloyds is set to run out first, as our graphic below shows:
Lloyds confirmed in February that it was clawing back bankers’ bonuses in order to fund the PPI compensation required by customers.
By our estimates, Lloyds and Barclays will need to find other sources for these provisions as a matter of urgency and RBS and HSBC will have to work out how they’ll cover their PPI refunds as they’re set to run out in 2013.
We’d suggest clawing back bankers’ bonuses is a good place to start, which is something we’re calling for in our Big Change campaign.
We also want to see the banks publish monthly updates on their PPI payouts so there is full transparency about the amounts that have been paid back.
Which? set up a free online PPI tool in 2009 to enable you to reclaim PPI yourself for free without needing to use a claims handler. Once a fortnight we take the opportunity to celebrate occasions where you have complained about something and have success in doing so. I’m overwhelmed by the number of people who get in touch to share their success stories and for that reason, this post is dedicated to the 27,000 of you who have used our tool so far.
Have you complained about a mis-sold PPI policy and had success with your bank? Did you need to escalate this to the Ombudsman or did your bank resolve it effectively for you?