The latest information from the Financial Conduct Authority (FCA) shows that £246.4 million in compensation for mis-sold payment protection insurance (PPI) was paid in March 2017, the last month for which figures are currently available.
On one hand, this figure is little more than half the £456.4 million that was paid in March 2016, so in this respect PPI payouts have fallen considerably over the last 12 months.
However, the figure for March of this year is also the highest for four months. The £213.1 million paid in December 2016 was the lowest monthly figure since July 2011, then £239.9 million was paid out in January 2017 and £235.3 million in February 2017.
The highest monthly payout was the £735.3 million recorded in May 2012. October 2013 was the last occasion on which more than £500 million was paid out in one month.
The total amount paid in PPI compensation now stands at a massive £26.9 billion. All figures are based on information from the 23 firms that the regulator says are collectively responsible for 95% of the total number of PPI complaints.
So, does the recent increase suggest that the impending PPI claims deadline has already had an effect?
It is widely expected that PPI complaint volumes will increase over the coming months, and that this will lead to a spike in the sums being paid in compensation a little further down the line. After August 29 2019, it will not be possible to refer a PPI complaint to the Financial Ombudsman Service, save for one which relates to administration or claims handling.
A major marketing campaign will commence shortly designed to alert consumers to the new deadline, and to prompt them to make one final check as to whether they may have ever been sold PPI, and then to consider whether they wish to make a complaint.
From August 29 this year it will be possible, for the first time, to make a complaint on the grounds that the provider failed to disclose a commission payment that amounted to more than 50% of the premium.
In the meantime, it is still possible to make a PPI claim on the grounds that the insurance was mis-sold. The industry’s final bill for the PPI mis-selling scandal could still reach £40 billion.
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.