Banks Cross £1 billion Mark

High street banks surpassed £1 billion for payment protection insurance (PPI) complaints in 2011 alone, according to the latest figures from the Financial Services Authority (FSA).

The figures were based on a total of sixteen unnamed high street banks and firms which were responsible for more than 92% of PPI complaints in the first half of the year.

All major banks were forced to pay compensation to consumers who were mis-sold protection plan as an additional cost when taking out an unsecured loan or credit card scheme as many people didn’t actually benefit from the protection or in some cases, didn’t even know about it.

Since then it has taken a total of ten months to pay back £1 billion to consumers. October saw the largest total repaid by the bank, with £269 million given back to customers.

We are pleased with the amount the banks have repaid already; however there are still thousands of dissatisfied customers who are still awaiting compensation and our services have remained in high demand into the first month of 2012.

In November providers were once again warned that regulators will be keeping a close eye on future payment protection products that are launched in 2012 as well as assuring customers who are still seeking compensation for mis-sold policies that the pressure is still high for banks to pay up.

The FSA as well as the Office of Fair Trading are both responsible for ensuring banks repay misled customers. Both acting bodies are currently proposing guidance to firms about protection insurance in an effort to prevent a repeat of the major issues with PPI last year.

For more information about how Precision Claims can help with your claim visit our PPI claims page or call 0844 704 1945.