As the countdown to the PPI claims deadline continues, speculation is rising about what the final total will be for what has become one of the largest financial scandals in British history.
Latest figures from the Financial Conduct Authority (FCA) show £34.9 billion has already been paid out since figures began in January 2011 and over the past year lenders have been paying an average of £360.61 million in compensation every month.
£10 billion more?
Now experts are suggesting there could be as much as £10 billion more to be paid out before the shutters come down with the claims deadline on August 29th.
All of the top lenders have been adding extra millions to their compensation pots to try to make sure they have enough set aside to pay future successful claims. In the last month Lloyds Banking Group (LBG) has added £100 million and CYBG (the former Clydesdale-Yorkshire Bank) added another £30 million.
Both banks said the increases were made necessary because they were receiving higher than anticipated numbers of new claims – in Lloyds’ case an amazing 13,000 a week. Both banks also said they could not rule out having to add even more money if claims continue to flood in.
Top journalist Sam Barker says there are fears that lots of people won’t make the claims deadline. She said: “Almost a quarter of all affected customers have little time left to get money that is rightfully theirs. Many are unaware they even had PPI.”
Two ways PPI was ‘mis-sold’ were in fact that it wasn’t sold at all and consumers could be totally unaware they have it.
The first ploy was for unscrupulous sales people to add it once the agreement had been signed, often by simply ticking a box on the application form. The second trick involved top-up loans. If PPI was sold on the initial loan it was simply added to all subsequent loans without asking the customer.
One woman who had already been paid out for mis-selling on a number of loans with NatWest asked if there were any more agreements with PPI attached. The bank admitted it found 13 additional top-up loans and paid her an extra £12,784 compensation.
More than just loans and credit cards
Despite extensive advertising over the years, there are still lots of people who are not aware that PPI was mis-sold on more than just loans. It was also attached to credit cards, mortgages, overdrafts, car finance, store cards and catalogue accounts.
In fact, some of the biggest ever payouts have been made on claims against credit cards, store cards and catalogue accounts. One Gladstone Brookes client was astounded to receive £94,570.65± on a Halifax credit card without being aware PPI had been attached to it. Another lady received £30,116± from a claim on her Debenhams card and another got a total of £28,475± for successful claims against JD Williams, Very and Littlewoods.
± denotes before fees and taxes
Do It Now!
If you believe you may have been mis-sold PPI your time to make a claim is running out fast and in the words of the FCA Arnold Schwarzenegger consumer awareness advert for the claims deadline ‘DO IT NOW!’