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£215 million in PPI compensation paid out

£215 million in PPI compensation paid out

Category: Money

Updated: 30/08/2011
First Published: 30/08/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Customers who were mis-sold payment protection insurance (PPI) were paid out to the tune of £215 million in the first half of 2011.

Figures from the Financial Services Authority (FSA) have revealed that £102 million was paid out in PPI compensation in May and June alone, following the High Court dismissing the banks' appeals in April.

Thirty-seven million pounds was paid back in May, while another £65 million was handed back to customers in June

The data shows that 16 firms, representing 92% of PPI complaints received in the first half of 2011, have paid a total of £215 million in redress between January and June 2011.

The remaining 8% of compensation was paid by approximately 400 smaller firms.

The watchdog will publish monthly updates on how much PPI redress is being received and totals are expected to increase further.

Recent results from the UK 's banks showed that billions has been set aside to pay back customers who were mis-sold the cover.

Margaret Cole, the interim managing director of the FSA's conduct business unit, described the treatment of PPI complaints as 'an indelible stain on the financial industry's record', and said that by releasing the figures the watchdog
is providing a useful measure of firms' progress that can be tracked on an ongoing basis.

"While the amount of redress paid in May and June is unsurprisingly large in the wake of the judicial review, looking ahead we expect the amounts to vary somewhat as firms clear their backlogs while dealing with complaints as well.

"We remain 100% committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms' progress to ensure this is done properly.

"Where we find that this not to be the case, we are not afraid to take tough action."

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