The total payout for PPI claims has topped £38 billion and still rising.
The milestone was reached with the announcement that £379.6 million had been paid out by lenders in November.
More than £⅓ a month
The figure maintains the average of more than £⅓ billion a month since the final deadline for claims In August last year.
In its final report into what became Britain’s worst ever financial scandal, the Financial Conduct Authority (FCA) revealed that in the final weeks of the claim period lenders were receiving upwards of 20,000 new complaints a day.
The deadline had been set by the regulator following sustained lobbying by the UK’s banking industry.
The FCA finally agreed to a final date of August 29th by which time all complaints had to be registered.
The response to the deadline advertising campaign, starring an animatronic Arnold Schwarzenegger urging people to make their claims before it was too late, was huge.
It led to a massive surge of complaints and inquiries which so swamped the banks that they were forced to scrap their usual timescale of a final decision on a claim in 8 to 16 weeks.
The FCA agreed to allow the lenders extra time to investigate claims with the banks announcing they expected to have completed their checks by the summer of this year. No specific date has been set for when the last of the decisions has to be made.
Experts believe the final compensation figure will be more than £50 billion.
Largest in UK history
FCA executive director Jonathan Davidson commenting in the final report. said: “PPI is the largest consumer redress exercise in the UK’s history.
We set out to bring the issue of PPI to an orderly conclusion and prompt consumers who wanted to complain about PPI to act.
Our campaign was a success in reaching millions of consumers, many of whom were not previously engaged with the PPI complaints process.
“Firms are still handling complaints. We will continue to monitor firms to ensure that those complaints are handled fairly.”
During the 14 month life of the deadline campaign a total of 8.9 million complaints were received by lenders, with 1.4 million submitted in the final weeks leading up to the deadline. A further 46.7 million checking requests were also submitted.
The report says a total of 32.4 million complaints have been made about PPI being mis-sold between 1990 and 2010, with some firms receiving as many complaints in the last 3 days as they had in the previous four weeks.
Of the 8.9 million deadline complaints received, 5 million were found to have PPI attached and, to date, 87% have been upheld with an average of £2,000 compensation being paid.
The official figures released by the regulator so far gives a total of £38 billion in redress already paid, but that is only for complaints to the end of November 2019.
The report said: “Redress will continue to be paid for some months yet, as firms conclude their handling of the remaining complaints.”
The FCA allowed 3,000 complaints received after the final deadline to be investigated as there had been ‘exceptional circumstances’.
Those included acute and prolonged health issues and family bereavement.
The report said: “We consider that, overall, the PPI issue has been brought to an orderly conclusion in a way that has secured appropriate protection for consumers and enhanced the integrity of the UK financial system.
“This will help to rebuild public trust in the retail financial sector.”