PPI compensation hits £9.3bn and counting

Laura Miller
clock • 1 min read

Compensation and refunds related to mis-sold payment protection insurance (PPI) have reached £9.3bn, the Financial Conduct Authority (FCA) has said.

A further £409m was paid back in February to customers who complained about the way they were sold PPI.

This is down from £439.3m in January, but up from £360.1m in December 2012.

February's figure brings the amount paid out for mis-sold PPI since January 2011 to £9.3bn.

The figures come from 24 firms that made up 96% of complaints about the sale of PPI last year.

During 2011 the then Financial Services Authority (FSA) covered 16 firms which accounted for 92% of PPI complaints.

PPI was the most complained about financial product in the second half of 2012, attracting 2.17 million complaints - a 5% increase on the first half of 2012 - according to FCA figures.

An analysis by consumer group Which? suggests the money banks have set aside for PPI mis-selling compensation will run out by the end of the year.

Which? said if pay-outs continue at the current rate the multi-billion funds to meet claims would run out by December.

LLoyds bank - one of the biggest sellers of PPI - has already spent £5.3bn paying compensation to customers. 

The final cost to the country's banks for PPI mis-selling is likely to be about £25bn, according to reports. 

 

 

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