How long has PPI got left to run?
Let’s face it, the PPI scandal seems to have been around for years doesn’t it?
If you haven’t received a spam call or text about it, where have you been?!
Whilst we’re on that subject, never ever deal with a company who uses such tactics as spam calls or texts. We’ve done a blog regarding this.
Anyway, back to the subject, firstly we need to take a little look back before we can predict how long has PPI got left.
Very brief history
How long has PPI been around? The first mumblings that something was very very wrong with the sale of PPI goes back to 1998.
However, the story didn’t really start to build until the mid to late 2000s following a report by the Office of Fair Trading in 2006.
From that moment complaints started to rise, but not enough for the media to grab hold of.
Complaints really started to rocket from late 2009, hitting a peak in 2012, and the number of complaints regarding the toxic product is still in the millions.
Why was PPI mis-sold on such a scale?
Simple really, the profits gained from selling the products were huge, and the banks couldn’t resist.
Because of the size of profits on offer lenders set bonus targets for their sales staff to hit, which in turn led to systematic mis-selling on a staggering scale.
Greed won over morals, as it tends to do with banks.
How much has been paid out?
According to statistics released by the Financial Conduct Authority, £16.6 BILLION had been paid out on compensation by August of this year.
With the compensation pot sitting at over £22 BILLION from the big banks (Lloyds, Halifax, Bank of Scotland, RBS, Natwest, HSBC, Santander and Barclays), topped up to over £25 BILLION when we add into the mix the amount also set aside by smaller lenders, this leaves £8.4 BILLION still to be paid out.
The banks are currently averaging payouts of £371 MILLION per month.
This means that it will take lenders almost two years to pay out the remaining amount that is in the pot.
However, this isn’t the whole story.
The true final figure – What will it be?
The financial industry, in our opinion, have massively underestimated how much this will eventually cost them.
Their figures depend on the estimated 7 million people who have yet to make a claim not coming forward.
They also rely upon consumers accepting when they receive a rejection from the bank. For more about how banks have saved themselves £17 BILLION by rejecting valid complaints, please read our article here.
Our figures suggest a bill closer to £42.5 BILLION.
We do realise that not everyone who is entitled to claim will do, and unfortunately customers still accept rejections from banks.
Nevertheless, a final bill will more than likely be around £30 BILLION.
Given £16.6 BILLION has been paid out, and banks are averaging £371 MILLION per month in payouts, it will realistically take a further 3 years for this scandal of epic proportions to finally be over.
The next scandal!
Did you honestly think that was it? The next scandal is upon us, and very much like PPI, it’s currently under the radar, but not for long.
Do you pay a monthly fee for your bank account, or have you in the past?
With 1 in 5 of us currently paying for a Packaged Bank Account, in exchange for various ‘perks’, it’s becoming clear that banks have been at it again.
Can you claim?
Not sure whether you’ve been sold PPI? Our fast and comprehensive checking systems that have been set up with almost all lenders, allows you to find out whether you’ve been one of the millions who have had PPI.
Not sure whether you qualify for PPI compensation? Check here to see whether you may.
Want to know how much you may be owed? Why not try our PPI calculator.
Do you pay a monthly fee fore your bank account? Check here to see whether you may qualify for compensation.
So….how do you start your claim?
#1: The first option for you is to fill in the form which can be seen on every page. By doing so, we will send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we send you with your form, we can make a start on your PPI claim.
#2: The second option for you is to download our form, which again can be found on every page by clicking the ‘download pack’ button. Simply print it out, complete it and send it back to us, our address can be found here. Once we receive is back we’ll let you know and make a start.
Our team of experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!