PPI scandal payouts top 拢30bn after Arnie warning
The FCA reveals a surge in the number of people claiming compensation over PPI mis-selling as its awareness campaign continues.
Thursday 19 April 2018 17:04, UK
Claims for mis-sold payment protection insurance (PPI) hit their highest level in four years during the second half of last year.
According to figures from the Financial Conduct Authority (FCA), the number of complaints rose by 40% on the first six months of 2017 to 1.55 million.
It believes the leap was due to publicity over the looming deadline for claims, which is 29 August next year.
The City watchdog said compensation for PPI - a loan insurance product - had now cost the financial services industry £30bn in total.
Firms paid out £415.8m this January alone, with an FCA awareness campaign urging consumers to heed advice on making claims, rather than using the services of claims management companies.
A series of adverts, featuring an animatronic model of Arnold Scharzenegger's head, has been screened on TV since August last year to urge potential claimants to "make a decision" and "do it now".
Christopher Woolard, the FCA's executive director of strategy and competition, said: "Having set a deadline for PPI complaints, we are encouraging consumers to decide whether they want to claim, and if they do, to make their complaint as soon as possible, as many already have.
"When PPI is taken out of the mix, the numbers of complaints firms are receiving has remained stable.
"Firms should be doing all they can to reduce complaints and ensure they are treating customers fairly," he added.
The FCA's update was made days after the owner of Clydesdale and Yorkshire banks said it expected to raise its provisions for PPI by a further £350m to handle tens of thousands of new claims.
The FCA's wider figures showed arguments over current accounts were the next most-complained about products.
Excluding PPI, the number of complaints received by firms was 2.21 million, around 13,000 fewer than the previous six months.