PPI compensation breaks the £33 billion barrier
The total amount of compensation paid for the mis-selling of PPI by Britain’s financial industry has broken the £33 billion barrier.
The Financial Conduct Authority (FCA) has announced that £353.4 million was paid out in October – a leap of more than £40 million over the total for September – taking the new running total of £33.3 billion since January 2011.
The rate of payouts still exceeds £⅓ billion a month as new claims continue to pour in.
Britain’s ‘bad bank’ sets aside another £44.1 million for PPI claims
UK Asset Resolution (UKAR) has set aside another £44.1 million to pay out future successful PPI claims.
UKAR was dubbed Britain’s ‘bad bank’ after the government set it up to manage the toxic assets of both Northern Rock and Bradford & Bingley in the wake of the 2008 financial crash.
Since then chunks of the two banks’ mortgage businesses have been sold off to large investment groups, but £13.6 billion worth of mortgages and loans remain with UKAR.
The surge in new claims prompted by the FCA’s consumer awareness campaign about the PPI claims deadline has forced the bank to raise the amount available to pay the new claims expected before the August 29th 2019 deadline.
PPI deadline news
In a review of 2018 the Financial Ombudsman Service (FOS) has announced that four out of ten of the total number of complaints it handles are still about PPI and it expects a surge in new complaints as the PPI claims deadline of August 29th 2019 draws ever closer ‘at a time and scale that aren’t yet clear’.
It is also experiencing a sharp rise in complaints about short-term lending like payday and instalment loans, receiving more than double what it had budgeted for – 50,000 instead of the anticipated 20,000. It has upheld five in ten of the complaints received.
Looking forward to 2019, FOS expects to receive a total of 460,000 complaints with more than half (250,000) about PPI. They also expect 50,000 new cases concerning short term lending.
Problems for online Christmas shoppers?
New security measures being introduced by banks could give online shoppers problems in the run-up to Christmas.
An EU directive – already accepted by Britain – requires banks to introduce more security to protect online shoppers and the system will involve sending passwords to your mobile phone so you can confirm the online transaction.
But critics say this could cause major problems for anyone who doesn’t have a mobile or lives in an area where reception is patchy.
Britain’s banks pass ‘disorderly Brexit’ test
Seven of Britain’s high street banks and building societies have passed the latest Bank Of England stress test and proved they have the resources to survive a ‘disorderly Brexit’ scenario should it happen.
The tests outlined deep theoretical domestic and global economic crises, including Britain crashing out of the EU next march with no deal or transition period.
HSBC, Barclays, Lloyds, Santander UK, Royal Bank of Scotland, Nationwide Building Society and Standard Chartered all passed with flying colours according to the Bank Of England’s Financial Policy Committee (FPC).
Charity of the month – Christmas Toy Appeal
Our final charity of the month for 2018 was the Christmas Toy Appeal with management boosting the dress down total to £1,000 to buy toys for under-privileged children of Warrington and district.
The trolley dash by teams of trainee elves has become a Christmas tradition and this year grabbed toys for a wide range of good causes including the Children’s Adventure Parks Trust, the Lalley Christmas Appeal, and various Warrington Borough Council children’s schemes.
The appeal also supports the Warrington and Halton NHS Foundation Trust who make sure that children in hospital over Christmas will have a little something to smile about.
It topped off a year of giving in which Gladstone Brookes staff donated more than £5,000 to a range of charities and good causes.