Britain’s banks were hit by more than 10,000 new PPI claims a day in the first six months of the year, according to new figures released by the Financial Conduct Authority (FCA).
The country’s financial watchdog recorded an average of 23,500 complaints a day of all kinds in the six months to June and 49% of them were for PPI.
But the numbers were expected to rise even further in the final two months before complaints became time-barred as banks reported massive influxes of new claims with consumers trying to beat the cut off.
Lloyds Banking Group (LBG) reported receiving around 900,000 PIRs (PPI Information Requests) a week in the closing stages.
Lenders have reported being swamped with claims and the FCA has issued a warning to say that it could be as late as next summer before some claimants find out whether or not they are owed any money.
In a special statement the watchdog said: “Most PPI complaints will not now get a final response within the usual eight weeks.
Instead we understand that the typical response times to complaints may sometimes stretch well beyond 24 weeks.
Consumers have been asked to respect the timescales and not keep asking for progress reports ‘as this will only further slow the process’.
The total of PPI compensation paid to date since January 2011 is £36.4 billion, but many observers believe it will rise to more than £50 billion before the scandal is over.
There is considerable uncertainty about how much more will be paid, but many big lenders have been adding more millions to their payment pots to make sure there will be enough to meet demand.
Lloyds Banking Group (LBG) has the highest exposure to claims and, though it added £½ billion just before the deadline, it added a further £1.8 billion afterwards. Barclays added £1.6 billion and Royal Bank Of Scotland (RBS) added £900 million.
All lenders have said they will continue to monitor complaint levels and may add even more to their provision if they feel it is necessary.