PPI compensation rising but still delays in payouts
Nearly £2 billion of payment protection insurance compensation was paid out last year but there are claims banks are not dealing with claims fast enough.
Nearly £2 billion was paid out in payment protection insurance (PPI) compensation last year, according to new figures by the Financial Services Authority (FSA). But this is only just over a quarter of the estimated £7.6 billion banks have set aside for compensation payouts.
Compensation payouts accelerated throughout last year, the FSA says, with a record £441 million paid out in December.
But banks are being criticised for the speed of their payouts. Since 1 January this year, they are permitted eight weeks to respond to claims. However, there is no deadline for paying out the compensation itself. Reports suggest people have had to wait up to six months for their cheques to arrive.
Consumer groups such as Which? are concerned that delays and difficulties in dealing with the banks is pushing more people unnecessarily towards fee-charging claims management companies.
The Financial Services Compensation Scheme, which pays out compensation in the event of firms failing, recently estimated that PPI claimants would pay out £12.6 million this year to claims management companies.
If you want to claim compensation yourself, there’s comprehensive guidance on how to do this in our article How to claim your PPI compensation.
Earlier this week, Lloyds Banking Group cut nearly £2 million from bonuses paid to 13 executives due to the PPI mis-selling scandal. Lloyds has set aside £3.2 billion to cover compensation claims.
Have you claimed PPI compensation? If so, how long did it take for you to receive a payout? Share your experiences in the Comments section below.
More: How to claim your PPI compensation | Six insurance policies that suck!
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My claim went in August 2011 and was admitted in November 2011 and I was told via a letter it would be resolved by December 2011 ,to date it remains unpaid by Lloyds TSB . Numerous phone calls later the only comment I keep getting is that it will get to me eventually . I have pointed out that whenever in the past I have OWED Lloyds money they have been on my case nearly 24/7 from their collections department almost to the point of harrassment and it is funny how when a situation occurs the other way round time is not a concern - Come on Lloyds do what it says on the tin and uphold some integrity on how you deal with customers how you yourself like and demand to be treated !!!!
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22 February 2012