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PPI – The Beginning of the End?

PPI – the beginning of the end

Well, that’s it! The PPI saga is over and done with as the much-heralded deadline passes into history.
But is it really over?

Not over for some months yet

No – it won’t be over for some months yet while the banks catch up on the millions of last minute complaints which flooded in with a possible £10 billion still available for successful claims.

And it would appear the deadline is not completely dead as claims for mis-selling can still be made through the courts, using a solicitor.

Direct

They can no longer be made direct by an individual or through a claims management company (CMC), using what is called a non-contentious approach which does not involve legal action.

But if a consumer believes they have a strong enough case – like being charged excessive commission on the sale of their policy under the Plevin ruling – then they still have the right to pursue the lender through the courts to get their money back.

How many?

It will take some time before we know just how many people left it until the last minute to make a claim, but it is understood the banks have been swamped with new complaints in the final countdown phase.

Lloyds Banking Group (LBG) said they were receiving 190,000 inquiries a week and both they and HSBC were so surprised at the volume of claims that they both added £½ billion to their compensation pots in the last few weeks. Santander added another £70 million to theirs.

So great was the last minute rush that all but one of the big High Street banks kept their phonelines open until the very last minute and drafted in extra staff to deal with the deluge of inquiries.

Total cost?

It will also take some time before we finally know how much Britain’s biggest ever financial scandal has cost.

The current total payout is just over £36 billion, but research by respected think tank New City Agenda suggests that it could be as high as £48.5 billion when the administrative costs of checking all the claims is taken into account.

Another £100 million

It is understood that CYBG – the former Clydesdale-Yorkshire Bank – intend to add another £100 million to their compensation pot when they announce their latest quarter’s figures in a few months’ time.

Other major banks have said they will be constantly monitoring their claims levels and could possibly further increase their own provision once the final number of claims is known.

Worried customers

Consumers wanting to make a last minute online claim against NatWest were left wondering if their complaints had been received when the bank’s website crashed on the final day, having also been down the previous day.

Anxious customers took to Twitter to complaint about the outage:

A NatWest spokesman told The Sun newspaper that claims could still be made by phone, but admitted problems had been reported using that method too.

“This may be the beginning of the end, but it’s certainly not the end yet.”

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Banks are trying to block new PPI claims

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PPI payouts jump by almost £100 million in a month

PPI payouts jump by almost £100 million in a month

Official figures show that the amount of compensation paid to successful PPI claimants has jumped by almost £100 million in a single month.

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PPI News – Lenders add a staggering £4.9 billion AFTER PPI Deadline

Lenders add a staggering £4.9 billion AFTER PPI deadline

Britain’s lenders have added a staggering £4.9 billion to their PPI compensation pots AFTER the claims deadline on August 29th.

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PPI News – Taxman hits the PPI jackpot

Taxman hits the PPI jackpot

The taxman looks set to reap millions of pounds from compensation payouts to Britain’s bankrupts.

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RBS – ‘We need to add more money to pay for PPI’

RBS - 'We need to add more money to pay for PPI'

Royal Bank of Scotland (RBS) is to add between £600 million and £900 million to its PPI pot because it fears it won’t have enough to pay out all of the successful claims against it.

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PPI News – FCA fears another PPI-type scandal

FCA fears another PPI-type scandal

Britain’s financial regulator is worried that a new recession could provoke another PPI-type scandal with the banks feeling pressure on their main sources of income.

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PPI News – GB’s Top 20 payments for August 2019

GB’s Top 20 payments for August 2019

In the run-up to the deadline we continued to recover hundreds of thousands of pounds for our clients with the Top 20 payments totalling a massive £703,360.22.

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PPI – The Beginning of the End?

PPI – The Beginning of the End?

Well, that’s it! The PPI saga is over and done with as the much heralded deadline passes into history.

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Are you sitting on a stash of old fivers and tenners? If so, the Bank Of England would like them back.

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PPI News – What happens when the PPI money runs out?

What happens when the PPI money runs out?

British economists are starting to voice concerns about what will happen when the PPI money runs out.

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