As Royal Bank Of Scotland (RBS) adds another £200 million to its PPI compensation fund, the Financial Conduct Authority (FCA) has announced the first year of its PPI deadline consumer awareness campaign has provoked a ‘clear increase’ in the number of new claims being made.
In their third-quarter figures, RBS say they have added additional funds to their PPI pot to reflect ‘greater than anticipated complaints volumes. The £200 million increase brings the total set aside by the bank to £5.3 billion of which £4.5 billion had been used by September 30th.
The overall payout for successful PPI claims since January 2011 has now risen to £32.6 billion. The £342.3 million paid out in August maintained the average £1/3 billion monthly increase over the last year.
Back in April 2011, Britain’s banks were paying just £28.6 million a month in compensation, but as the true scope of PPI mis-selling became apparent that monthly total zoomed to a record £735.3 million a month a year later.
As payout levels started to rise the British Bankers’ Association started to lobby the FCA for a final deadline on claims and, following consultation with all interested parties the regulator agreed to a final claims deadline of August 29th 2019.
As part of the deal for setting the deadline, the FCA ordered the banks to fund a £42 million consumer awareness campaign in an attempt to make sure that anyone who thought they might possibly have a claim had the opportunity to do so before losing the chance to do so forever.
In a statement, the FCA has said the first year of the campaign, which features an animatronic Arnold Schwarzenegger Terminator character, has been successful with a 40% increase in claims numbers over the pre-campaign level.
More than 3.7 million complaints have been made since launch – 63% up on the previous 10 months – and £3.7 billion has been paid in redress for successful claims – a 64% increase in the same timeframe.
FCA executive director of supervision, retail and authorisations, Jonathan Davidson, said: “We are encouraged by the results of the first 10 months of the campaign.
“However, with less than a year until the deadline, we will carry on working hard to ensure every consumer has had the chance to make a decision on whether to complain about PPI. Since 2011, more than £30bn in redress has been received by consumers.”
The regulator has been monitoring the performance of the banks and their processing of claims to ensure consumers are being treated fairly and complaints handled efficiently.
Mr Davidson said: “Where we have seen firms failing to meet the standards we expect, we have challenged them to make improvements.”
The statement continued: “The FCA aims to continue the positive trend of improved understanding of PPI, the deadline for complaining and what to do, particularly amongst black and minority ethnic and disabled consumers.
The focus will be on strengthening consumers’ understanding of what to do before the deadline and how to make a PPI complaint.