Payment Protection Insurance payouts pass £7 billion

Banks and building societies fork out more than £7 billion in compensation to victims of the PPI mis-selling scandal.

New figures from the Financial Services Authority have revealed that more than £7 billion has been paid out in compensation over the past 18 months to people who have been mis-sold payment protection insurance (PPI).

In September alone £516 million was dished out.

The PPI scandal shows no sign of disappearing any time soon. In the first six months of the year it represented 63% of the complaints received by the Financial Ombudsman Service (FOS), with a whopping 85,562 new complaints.

And Lloyds and Barclays have had to put aside an extra £1 billion and £700 million respectively to cover the costs of compensation.

Currently the banking industry’s bill for PPI compensation stands at more than £12 billion, though there have been concerns that some people are attempting to claim compensation despite never having been sold a PPI policy. Read Building societies bombarded with bogus PPI claims for more.

If you still haven’t put in your own claim, be sure to read How to claim your PPI compensation, which explains how easy it is to submit a claim yourself without paying for a claims management firm to do it for you. It’s also worth reading The most successful PPI complaints.

More on PPI

The only PPI worth buying

Building societies bombarded with bogus PPI claims

PPI tops complaints to the Financial Ombudsman

The real result of PPI mis-selling