PPI customer compensation in 2011 nears £2 billion£2bn redress a quarter of expected final PPI total
22 February 2012
Redress paid to customers complaining about the sale of payment protection insurance neared £2 billion in 2011.
The release of monthly figures by the Financial Services Authority (FSA) highlighted that the payment protection insurance (PPI) redress paid back to customers by companies was £441 million in December 2011, the largest monthly payout yet, giving an annual total of £1.9 billion.
Companies provide the FSA with data one month in arrears and the figures are based on information from 16 of the biggest firms involved, accounting for 92% of PPI complaints in the first half of 2011.
Which? PPI claim tool
Which? has long campaigned against the sale of PPI on credit products and we were pleased when the High Court dismissed legal challenges against the FSA's measures to ensure customers are treated fairly when complaining about the sale of a PPI policy in April 2011.
This represented the end of the legal process and companies should have got on with dealing with complaints and paying money back to customers in the second half of 2011.
If you think that you've been mis-sold PPI, you can use the Which? online claim tool to help you submit your claim and attempt to claim back the money you think is due to you. More than 14,000 of you have sent complaints via the tool since it was launched.
Avoid claims management companies
Richard Lloyd, executive director at Which?, said: 'It's good to see the PPI payout is finally starting to speed up but last year's compensation of £1.9 billion is less than a quarter of what lenders expected to refund. Too many people are still finding the claims process too lengthy, the banks must streamline the process to make it easier for people to claim.
'Otherwise this leaves an open goal for claims management companies that charge people a hefty fee for putting in a claim which is easily done yourself for free. Which? has found dubious practice by claims managers, including bombarding people with misleading information about getting PPI compensation. Our advice to anyone who thinks they may have been mis-sold PPI is to contact their lender directly themselves or use a free website like which.co.uk.'
- Use our free online PPI claim tool - Which? helps you submit a PPI claim
- The Which? PPI campaign - read about our longstanding PPI campaign
- Phone the Which? Money Helpline - if you've any queries about making a PPI complaint