Latest figures from the Financial Conduct Authority (FCA) show that £242.1 million in payment protection insurance (PPI) compensation was paid out by the UK’s financial institutions during November 2016.
This means that monthly PPI payout amounts per month have largely held steady since May last year. For every month between May and November, the total paid in compensation to victims of mis-selling was somewhere between £223.7 million and £266.8 million. These amounts are however lower than the £400 million or more which was paid out every month between February and April 2016.
The payout figures, based on information supplied by 23 firms that are collectively responsible for 95% of the PPI complaints, also show that the total paid in compensation by the UK’s financial institutions since the start of the PPI saga has passed £26 billion.
The figures for the actual number of PPI complaints being received are also not falling as significantly as previously. In both the second half of 2015 and the first half of 2016, there were around 930,000 new PPI complaints made, according to FCA data obtained from firms. Complaint figures for the second half of 2016 have not yet been published by the FCA.
PPI complaints being received by the Financial Ombudsman Service (FOS) between April and December 2016 totalled 121,557. This means that the final total for the 2016/17 financial year is unlikely to be much lower than the 186,994 PPI complaints the FOS received in the entire 12 months to March 31 2016.
So, in summary, while both payout amounts and volumes of new PPI complaints are lower than those seen four or five years ago, in recent months there has been little change in the figures.
PPI complaints could yet increase again as a deadline for making a complaint looms. Whilst £26 billion has been paid out in compensation to date, the UK’s banks and other sellers of PPI have collectively set aside some £40 billion to pay compensation.
A formal statement from the FCA is still awaited, but it is expected that, later this year, the regulator will announce that a deadline for making a PPI claim will come into force in late 2019. Firms and consumers will be given two years notice of the deadline being introduced, time for the FCA to conduct a publicity campaign to alert consumers to the need to make a claim swiftly. The campaign will be funded by 18 firms that sold the most PPI.
At the same time as it confirms the PPI deadline, the FCA is also expected to announce that PPI claims can be made on the grounds that the firm failed to disclose to the customer the existence of a large commission payment.
Until the FCA acts however, it remains business as usual in the PPI arena, with customers invited to complain to the firm that sold their PPI if they believe they have a case for mis-selling, and to then refer the matter to the FOS if they feel the complaint was not handled effectively.
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.