PPI compensation soars in first half of 2011
With millions of customers looking to reclaim their money for mis-sold Payment Protection Insurance (PPI), figures from the Financial Services Authority (FSA) show that £215 million of compensation was paid out during the first six months of 2011.
Payments made in May and June accounted for nearly half of this total – £102 million – following the failure of the bank’s legal challenge to the compensation requests.
While this is a significant sum, it is likely to be just the tip of the iceberg with major banks setting aside substantial amounts to cover future claims. This includes Lloyds Banking Group (£3.2 billion), Royal Bank of Scotland (£850 million), HSBC (£270 million) and Barclays (£1 billion).
The FSA will now publish data on PPI compensation payments each month with a running total, providing a useful ongoing measure of firms’ progress.
