The amount of money being paid to customers for PPI claims is now well beyond the £30 billion mark. Have you made a claim yet?
There is now less than a year for consumers to make their PPI claims. 29th August 2019 is the cut-off date and as it’s getting nearer, the banks are extremely busy handling high volumes of claims. Lloyds Banking Group is receiving 13,000 claims a week and it expects the figure to remain this high until the deadline.
Yet, despite the high number of claims, Lloyds is still making a profit. However, the same cannot be said for all banks: Barclays reported a decline in profits due to PPI claims and other legal costs.
But, it’s not just repaying customers that’s costing the banks. The Financial Conduct Authority (FCA) made the banks pay for the £42 million advertising campaign to promote the deadline. Fronted by Arnold Schwarzenegger, the campaign is encouraging more people to make claims.
How Much Has Been Paid for PPI Claims?
The FCA regularly updates its website with the amount that the banks have paid to consumers. In July 2018, payouts totalled £353 million, meaning the total repaid since 2011 is now over £32 billion.
In January 2018, the banks paid consumers the biggest amount since March 2016. This leads many to believe that the FCA PPI advertisements are encouraging people to claim.
How Much Could The Banks Pay Before the 2019 FCA PPI Deadline?
With just under a year left to claim, the banks will likely reach the £40 billion mark. Although August 2019 is the cut-off date, some claims won’t be resolved until September 2019, meaning the banks will still be paying customers for a few months afterwards.
The Financial Ombudsman (FOS) is also dealing with a backlog of PPI claims. Thousands of consumers whose claims were rejected by the banks have contacted the FOS to review their case. These claims could take up to two years to be resolved. As such, the banks are still likely to be paying some consumers in 2020.
What is The Average PPI Refund?
Due to the sheer volume of mis-selling, some customers had PPI on more than one product, leading to a substantial payout.
The FCA reports that the average claim amount is £1,700. However, some customers have received much more than this and it has helped to pay off debts, save for a mortgage or enjoy a holiday. Some believe that the surge in people making PPI claims before the deadline is great for the economy, as people will have more disposable income.
With such huge sums of money at stake, it’s important for everyone to check if they were mis-sold PPI. Thousands of consumers were never aware that they had PPI, as it was automatically added onto mortgages, credit cards and loans.
There are two ways to make a claim. The first is to do it yourself, which can be longer and more time-consuming but is the free option. The second is to contact an honest PPI claims company, such as Canary Claims, to handle the case for you. This includes uncovering old paperwork with evidence of PPI and making a claim to the bank.
Canary Claims offer no win, no fee PPI claims policy [Cancellation charges may apply only if the claim is cancelled after the 14 days cooling off period. The fee would be based on the work done at the time of cancelling at a rate of £120 per hour and up to a maximum total of £180] and a low fee on successful claims of only 15% + VAT (18% total). We can start your claim today even without paperwork. Call us on 0800 634 8668 or use our contact form.