Lloyds’ PPI compensation pot rises to £3.5 billion
The news that the publicly-owned Lloyds Bank is to provide another £300 million to cover the cost of PPI refunds shows just how much payment protection was mis-sold by major financial institutions.
In 2011, Lloyds set aside £3.2 billion to cover PPI refunds – with the new lump sum to pay PPI compensation, Lloydsâ€˜ total PPI compensation pot will stand at £3.5bn – roughly one-third of the £9-10 billion the Financial Services Authority (FSA) has estimated will be needed to repay all PPI claims.
The PPI claims industry has recently been vilified for poor practice:
- in the second half of 2011, the FSA received a record number of complaints about PPI claims companies, nudging the one million mark for the first time;
- however, in 2011 alone, financial institutions paid out £1.9 billion in PPI compensation to consumers who had been mis-sold payment protection.
Claims specialists at PPI Refund 4 Me frequently find that those who have been mis-sold PPI are on low incomes and may have agreed to take out payment protection to secure vital loans or replace essential items in their homes.
PPI Refund 4 Me acknowledges that unscrupulous PPI claims agents exist – but the FSA has closed down companies which mishandle PPI refund claims.
Last week Barclays Bank also topped up its PPI refund pot to the tune of £300 million, making it likely that the current figure of £9-10 billion as a final figure for PPI refunds may turn out to be a conservative estimate.
However, while vulnerable and low income consumers continue to be targeted by unscrupulous sales “advisers” within the financial services sector, restoring consumer confidence may remain a challenge.
PPI Refund 4 Me believe tactics such as cold calling and unsolicited emails can only damage the sector and obtains most of its customers by recommendation.
About PPI Refund 4 Me.co.uk
PPI Refund 4 Me.co.uk had £350,000-worth of PPI claims successes in November 2011
PPI Refund 4 Me.co.uk is regulated by the Ministry of Justice and appoints a dedicated account manager to each of its customers whom they can speak to whenever they call.
PPI Refund 4 Me.co.uk does not believe in cold calling, sending unsolicited emails to potential clients or misleading consumers over our fees or the chances of receiving a disproportional settlement for any PPI claim they make.
PPI Refund 4 Me.co.uk offers a PPI claim service on a No win No fee basis to customers, most of whom discover our services by word-of-mouth or recommendation.
PPI Refund 4 Me.co.uk
201-204 Murdoch Chambers
153A Corporation Street
Birmingham B4 6PH
Tel: 0121 2364843 (0800 044 5196)