With just weeks to go before Santa brings the happiness of Christmas to families all over the country, Britain’s banks are pumping £1/3 billion a month back into the economy and helping parents buy bigger and better gifts for their children.
But it’s not just Christmas joy that’s being delivered. Official Financial Conduct Authority (FCA) figures show that Britain’s financial institutions have been paying out an average of more than £300 million a month for the last year.
£32.6 billion and rising
Compensation for successful PPI claims is now at £32.6 billion and rising since records began in January 2011.
While, for the most part, the money paid out is the return of premiums from mis-sold policies, a large chunk of that £32.6 billion is interest payable on premiums which have been paid for years.
Credit and store cards
This is especially true in the case of credit and store cards as fees are charged on the residual balance on the card, many of which have been maxed out over a period of years.
Gladstone Brookes’ biggest successful claim on a single policy was for a lady who had held a very high balance on her Barclaycard for many years which was the reason she received a cheque for more than £90,000*.
Our successful clients have used their redress in a wide variety of ways, all pumping the cash back into the economy.
In these difficult times of trying to save for the deposit to buy a new home several of our clients received enough back from their PPI claim to help them get their foot on the first rung of the property ladder.
Andrew Eyre used his compensation for the deposit on his first home with his wife after 13 years of renting.
Said Andrew: “The money came just at the right time as my father in law was diagnosed with cancer and we wanted to be closer to the family. The house we bought is only 8 doors away from my wife’s parents and thankfully things have turned out well for my father in law.”
Even if a new house wasn’t on the cards, large amounts of cash have been spent on home improvements.
Patricia Ryan used her payout to do some outside repairs, other work in her living room, bought some furniture and still had enough for a holiday in Tenerife!
Muriel Stirland had another make-over. Her new bathroom has a walk-in shower, new toilet and wash basin and fitted cupboards. She also ordered a new three piece suite, curtains and carpet and some garden fencing.
Setting up a business
Becoming your own boss is something many of us aspire to but can never quite make the dream come true. But for Theresa Chapman her decision to made five claims against Lloyds Bank brought her enough money to pack in her 9 to 5 job and start her own cycling business with her partner.
Rosie Harness used her payout to turn her hobby into a new career when she became a perfumier.
She said at the time: “You enabled me to move from being a hobby perfumer to launching my own perfume brand! From being just a ‘perfume potterer’ I am now a professional perfumier.
Being able to take that special holiday is also very popular with our successful clients like Sandra Evans’ special trip to Rome with her daughter.
For Margaret Guizzetti her redress helped pay for her ticket to her son’s wedding in in Portland Oregon while Pauline Ellerington went to Graceland in Memphis before visiting New Orleans.
But for two of our clients their payouts were used for something very special indeed – successful IVF treatment to make their dreams of a family come true.
Nurse Pam Kaur had been trying for a baby without success for 10 years but then her successful claims gave her the money to go in for IVF treatment and she ended up having not one but two beautiful babies – Dillion and Jordan.
Nicola Coombs had tried several rounds of IVF to get a sibling for her son Elliott, but they weren’t successful. She had almost given up because she couldn’t afford another try when the redress came through for her successful claim and beautiful daughter, Imogen, was the happy result.
However, one of the biggest single benefits to the economy from the PPI scandal has been the number of new jobs created to process the complaints and pay out successful claimants.
The employment group Manpower estimated ‘at least’ 20,000 jobs were created by financial firms having to deal with millions of claims of mis-selling.
The Financial Ombudsman Service (FOS) was also forced to drastically increase its staffing levels to deal with the number of appeals after claims had been initially rejected by the banks.
At one stage in 2016 there were more than 1,500 staff actively working on PPI complaints, plus 217 ombudsmen.