PPI Compensation
PPI Compensation could hit 2.7 Billion!
The latest projections have revealed that as many as three million people could be refunded for mis-sold Payment Protection Insurance (PPI). The financial institutions being held responsible are not likely to be smiling through the process either, as they fit a potential bill of 2.7 billion. This according to Financial Services Authority (FSA).
PPI is a potentially useful product which was designed to assist debtors who had found themselves unexpectedly and inconveniently unemployed. In this event the policy would cover the loaners monthly debt, but thousands of consumers were mis-sold PPI which was unsuitable for them and would never actually pay out.
The BBC reported that the FSA anticipated an incredible 550,000 complaints per year for the next five years or possibly more. Featured in the same report, it was projected that compensation for mis-sold PPI is expected to average around 900 pounds for standard PPI policies and upwards of 1,800 pounds for the notorious single premium policies.
"Since we took over the regulation of PPI we've carried out 24 investigations and three thematic reviews, issued warnings, halted the selling of single premium PPI with unsecured personal loans, visited over 200 firms, and handed out some very significant fines," stated Dan Waters of the FSA.
He went on to say that they had seen a significant rise in complaints in the past two to three years, as well as a very critical analysis by the Office of Fair Trading (OFT) and the Competition Commission.
We are ourselves seeing a greater number of enquiries from our customers here at Direct Financial Reclaim. With the current Judicial Review being pushed forward by the British Bankers Association, the process has slowed. The FSA is, however, still pushing the banks to compensate customers, and at Direct Financial Reclaim we are working side by side with the Banks to ensure a smooth process. If you believe that you have been mis-sold Payment Protection Insurance, please contact us today for professional assistance.
