The scandal surrounding mis-sold PPI has been an ongoing, tumultuous affair for over a decade in the UK.
However, the new figures released in relation to the crisis leave no doubt at all regarding the sheer scale of the problem.
The UK’s five biggest banks have paid out a collective £8.8 billion to customers who were mis-sold this specific form of insurance. All indications are now that the final total is set to top £10 billion in the near future.
Numerous claims management companies are assisting customers in their quest to claim compensation, with some people posting more legitimate claims than others.
Lloyds Banking Group has now put by a provision of £4.3 billion to deal with the anticipated compensation claims which they expect to deal with. Such a figure emphasises the incredible level the situation has reached, and indicates that the banks are working to correct the problem and restore their reputations generally.
It has also been stated by the consumer group Which? that this PPI mis-selling could be set to become one of the biggest financial scandals of all time.
Peter Vicary-Smith, Chief Executive of Which, stated: “The banks must make it straightforward for people to reclaim PPI themselves, for free, so they don’t resort to expensive and unnecessary Claims Management Companies (CMCs).”
Between the months of April and June the Financial Ombudsman Service received a total of 32,445 complaints about the mis-selling of PPI. The records also indicate that a staggering 1,000 new PPI complaints are being received every day on average.
If you are applying for an unsecured loan, it is important to make sure you are fully aware of every aspect of how the loan works and what is attached to it.