PPI ‘costliest’ for Britain as claims peak

Payment Protection Insurance or PPI has become the costliest of Britain’s financial mis-selling scandals with the total bill expected to top Stg£20bn.

Complaints about payment protection insurance are levelling off and “possibly falling”, according to the Financial Ombudsman Service (FOS).

 

Banks being investigated for PPI mis-selling

Banks being investigated for PPI mis-selling

With claims of mis-selling mounting, Barclays increased for the fifth time its PPI provisions by a further Stg£1.35bn. It has now set aside compensation of more than £4bn.

But data from the FOS shows the number of complaints arriving at its doors – and it only considers complaints once the customer and bank cannot agree – are gradually falling.

Natalie Ceeney, the Chief Ombudsman, said the daily inflows of new complaints now tally 2,000, down from a high last December when they regularly reached 3,000. Quarterly figures also show a fall, albeit small, between the first and second quarters.

Meanwhile, in Ireland, banks are currently contacting an estimated 13,000 clients as part of a Central Bank led investigation into mis-sellling of PPI. The review is ongoing with Central Bank officials refusing to speculate as to the levels of mis-selling that may have taken place.

 

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