With less than three months to go until the final payment protection insurance (PPI) claims deadline of August 29, the Financial Conduct Authority (FCA) has announced the amount of redress paid on this product for March 2019.
The March figure was £325.9 million, and this represents a 9% increase on the latest figure for the previous month. It should be noted here though that the number of days in the month of March is around 10% higher than in February, and also that the FCA regularly updates its monthly PPI compensation figures once additional data becomes available. For example, the February 2019 figure was originally announced as £286.4 million, but this was revised to £298.6 million on May 24 of this year. The March figure may well be revised upwards in due course.
Indeed, May 24 2019 saw the regulator revise all of its monthly PPI redress figures for the period January 2018 to February 2019, and in each case the revisions saw these monthly amounts rise by an amount that was somewhere between £10 million and £20 million.
The new figures show that £433.3 million was paid in January 2018, which was the largest total payout since March 2016. The total compensation paid in January 2019 has been updated to £350.4 million, which was higher than for all of the previous five months.
The total paid in PPI compensation now stands at £34.9 billion. In the first three months of 2019, a total of £974,956,563 (almost £1 billion) was paid out, although this is actually less than a quarter of the total figure for 2018, which was £4,434,600,700.
The highest monthly compensation figure was £735.3 million, from May 2012, and the highest annual payout was £6,278,972,550 (£6.3 billion), which occurred in 2012.
The Financial Ombudsman Service (FOS) says that in the 2018/19 financial year PPI complaints referred to them were 3% down on the previous year, from 186,418 to 180,507. Also, PPI no longer accounts for the majority of the complaints being made to FOS, with 46% of the annual total concerning this product; and the PPI uphold rate at FOS was only 21%, way below the levels seen in previous years.
Although August 29 is the last day on which most PPI claims can be tabled, the long-running saga looks set to rumble on a while longer. The date at the end of August is simply the last day on which a PPI complaint can be made to a firm, then from this time the firm will have eight weeks to investigate the complaint, and the customer will have a further six months after that to decide whether to refer the matter to the FOS.
Firms that sold PPI, and claims management companies that handle claims about this product, have both been warned to expect a surge in complaint volumes as the deadline approaches, indeed it has been suggested that some of the banks and other large PPI providers could receive thousands of complaints on the final day.
The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article