PPI Compensation to pass £10bn
New figures have been unveiled that indicate that the total cost of missold Payment Protection Insurance (PPI) will cost the financial industry more than £10bn. Throughout April, figures for the total compensation package were largely expected to reach £8bn. However, the latest data reveals an underestimation, with claimants gaining back far more than initially believed.
There have been a large number of reports in recent weeks from banks saying that they have to increase missold PPI liability levels due to the increase in claim numbers. In the first quarter of 2012, a vast increase in claim rate was seen, with many more consumers becoming aware of the need to gain back money that they were rightfully entitled. With the average payout rising from around £1,700 to £3,000, individuals could get lucrative settlements at a time when economic circumstances are making every penny count.
Whilst Barclays increased its missold PPI fund by 30 per cent at the beginning of May, a rise of £300m, RBS has also announced a further £125m to be added to its pot. Both Lloyds and HSBC have also done the same, significantly increased the total worth of PPI compensation funds.
With around £10bn being owed to customers, it is vital for people who think that they are owed money to seek out professional advice and put in a claim. Payouts can be significant, offering an important lifeline for those in desperate need of money.