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Is there any validity to the PPI fuss? What has it really cost?

Banks, building societies and other lenders sold PPI alongside credit cards and loans, and was assumed to cover repayments if borrowers lost gains through an injury, illness or unemployment. Yet, in many situations borrowers are not told the cover was not obligatory, and others found that exclusions on the coverages meant when they went to make a claim they are not entitled to a payout.

In the cover's half-year results, Lloyds Banking Group said it was putting aside an additional GBP500m to match its prices, bringing its provisions up to now to nearly GBP7.3bn. Of that new cash, GBP50m will cover the expense of an investigation into difficulties at among the bank's criticisms centers, which found customers' charges rejected or delayed. The bank in the last quarter of 2012 spent GBP200m a month settling 6,000 employees and has about them processing claims.

Barclays has additionally declared it will want an additional GBP1.35m to insure claims, which, according to its chief executive, return to the 1980s sometimes. The bank has set GBP4bn to cover the expense of compensating its customers.

Recent figures the destination of charges not settled to the satisfaction of a customer by their bank, revealed charges were coming in in the first quarter at speed. Eight in 10 PPI criticisms are upheld in favour and Lloyds has rates are upheld by among the greatest. In the second half the ombudsman upheld 86% of criticisms made against the bank.


Lloyds is definitely the worst success of the main UK banks, as it sold PPI harshly than competitors and had the biggest share of consumer financing. The bank has paid GBP7bn to customers who were missold PPI as an easy method to shield their loan repayments out if they lost their occupation or fell ill.

While Lloyds said typical monthly criticism quantities dropped to 37,000 in the final three months of a year ago, about a quarter, it anticipated a slower decrease in future.

It was also preparing for an increased percentage of customers to react for more claims to be upheld than before, and to its mailshots on PPI. The latest provision of the bank is predicated on the premise that it is going to receive an additional 550,000 complaints.

Other UK banks also have taken substantial hits.

Overall, the Financial Conduct Authority sets the accumulative PPI payouts in the business to consumers at GBP13.4bn.

Don't be the product, buy the product!