The payment protection insurance scandal has been devastating to the United Kingdom’s economy. The country’s banks finally have to pay for the cost of it. A new report from The Guardian revealed that the crisis has cost the banks twice as much as the Olympic Games.
Which? Finds PPI Costs Surging for Banks
A recent report from Which?, one of the country’s consumer watchdogs, found that the PPI scandal is costing the banks more money every year. The report showed that the banks have been forced to pay customers over £25 billion. The Olympic Games in 2012 cost the country less than £9 billion.
The cost of the PPI scandal is expected to keep growing even more in the near future. Both Barclays and Lloyds have announced that they have needed to set aside even more money to pay customer claims. Customers have been filing more than 10,000 claims against the High Street banks every week. Some experts believe that at least two thirds of consumers who have been mis-sold PPI still haven’t filed a claim. More claims will probably surface when they realize it.
Banks Feeling Pain from New Claims
The PPI crisis has seriously eroded the profits of many banks. Some banks were guiltier than others and are facing larger bills. Lloyds, one of the biggest offenders in the PPI mis-selling scandal, was forced to pay about £200 million a month between September 30 and December 31 to settle many of these claims. A number of customers filed claims with a PPI claims company to help get their money back.
The banks have also been forced to pay fines for failing to resolve mis sold PPI claims in a timely manner. Lloyds has already paid over £4 million for being delinquent on many of the claims that were filed last year. The Financial Conduct Authority is creating stricter policies that the banks will need to abide by. Banks that fail to pay even larger penalties in the coming months.
Banks Shown Little Sympathy
Consumers throughout the country are furious at the banks for the financial scandals that have erupted in recent years. The PPI and LIBOR rate fixing problems have caused many to lose faith in the financial industry. A recent survey found that many people won’t trust the banks again for at least a decade.
These people have shown little sympathy for the losses the banks have incurred due to the PPI crisis. They are more concerned with getting their money back from them. Many people are protesting to the Financial Ombudsman Service insisting that the banks need to pay their claims in a timelier manner.
Is it Worth Making a PPI Claim?
The answer to above is quite simple: yes, it most certainly is! The payment protection insurance (PPI) scandal has so far seen hundreds of thousands of people reimbursed the cost of their PPI policies thanks to them having been mis sold, and with an average repayment of £2750 it is certainly worth the effort. Furthermore, there is very little effort involved as, thanks to a High Court ruling, the banks have had to set aside many billions of pounds to repay the cost of the policies, and it has never been easier to claim.
How to Estimate Your Repayment
It is worth bearing in mind that, while so far £10billion has been reimbursed it is estimated the total cost could be in excess of £25billion; this clearly indicates that there may be more claims to come than have already been seen. Anyone can get an idea of the amount they may be owed by using an online PPI calculator where you can make use of resources that, quickly and easily, give a good estimate of the amount of an individual repayment amount.
Some Numbers that May Amaze You
The Financial Ombudsman Service (FOS) issued some statistics regarding PPI in September, 2013, that make interesting reading: for example, the FOS itself has 1500 dedicated staff dealing with around 2000 new complaints concerning PPI every day, and the number of claims made in the first half of this year (2013) amounted to an increase of 26% over the last quarter of 2012. No doubt this is down in no small part to the increased public awareness of the scandal, but the figures are still quite astonishing to behold. Anyone yet to claim is strongly advised to make the first move as soon as is possible.
Further information is available on the website: HaveIGotPPI.org.uk