Payouts continue to rise
Latest PPI figures released by the Financial Conduct Authority (FCA) revealed that lenders have paid £32.9 billion between January 2011 and September of this year.
FCA figures are always several months behind time but have consistently shown that over the past year that the monthly payouts have averaged more than £⅓ billion. If they continue at the same rate the £33 billion barrier will be broken before Christmas.
We are now just nine months away from the PPI claims deadline on August 29th 2019 and figures from the banks suggest the number of new claims is continuing to soar as consumers make sure they will beat the cut-off date.
Lloyds Banking Group (LBG) revealed in their half year figures that they are receiving 13,000 new claims a week – 2,000 more than they expected – and added more than £1 billion to their PPI pot over the year to pay future successful claims. In the first six months of the year they have paid out £1.02 billion.
Is the FCA deadline advertising campaign really working?
With just nine months to go before the PPI deadline on August 29th next year, a survey commissioned by the Professional Financial Claims Association (PFCA) suggests that the £42 million consumer awareness exercise ordered by the Financial Conduct Authority (FCA) is not reaching all of its intended targets.
The Populus survey of more than 2,000 people across the country found that 46% of UK adults either didn’t know there is a PPI deadline or, if they knew, they had no idea of the cut-off date.
Top three banks by PPI provision
No-one yet knows how much PPI compensation will be paid overall – even the lenders themselves as they continue to add extra funds to their compensation pots to meet the cost of future claims.
The top three currently are:
- Lloyds Banking Group (LBG) at £19.225 billion
Latest estimates suggest that more than £40 billion has been set aside by the industry.
CYBG – the former Clydesdale-Yorkshire Bank has just increased its PPI provision by £150 million to a total of £2.64 billion.
The annual report said it had received more than 483,000 complaints to date and expected a further 83,000 before the PPI claims deadline on August 29th 2009.
Investigation into treatment of ‘financially vulnerable’ customers
The House Of Commons Treasury Select Committee has started an investigation in the treatment of ‘financially vulnerable’ customers by Britain’s banks and other financial institutions.
It follows a ‘super complaint’ by Citizens Advice alleging consumers are losing £877 a year by remaining loyal to their banks, insurance companies, broadband providers, insurance companies and mortgage providers.
FCA orders firms to re-open 150,000 complaints
The Financial Conduct Authority (FCA) has ordered financial firms to contact 150,000 people with previously rejected claims to say they can make a new complaint about non-disclosure of commission.
The updated guidance is aimed at so-called Plevin cases in which consumers were not informed about the high level of commission being attached to their PPI policies.
Charity of the month – Children In Need
Children In Need (CIN) was our penultimate charity of the month for 2018 and we were able to add our £400 collection to the overall record total on the night of £50,593,013.
CIN donates tens of thousands of pounds to charities all over the country and local recipients from last year include Warrington Disability Partnership (£76,250), Warrington Wolves charitable foundation (£119,763) and Warrington Youth Club (£116,721).