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4 Jul 16

Monthly PPI payouts remain high in 2016

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The Financial Conduct Authority (FCA) reports that since January 2011, £24.2 billion has been paid out to customers who were mis-sold payment protection insurance (PPI).

Despite media reports that claims for PPI are coming to an end, the figure for March 2016 (£456.40m) was in fact the largest monthly payout since October 2013. Year on year 2016 has the second highest payout volume for quarter 1 with £1,257.90m compared to £1,380.10m in 2012 – see graph below.

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In addition, PPI remains to be the most complained about product to the Financial Ombudsman, by a long way.

188,712 PPI cases were reviewed between April 2015 and March 2016 with 72% of cases upheld. The next most complained about product during the same time period was Packaged Bank Accounts with 44,244 complaints.

The Telegraph reported:

“In March, the total number of complaints about mis-sold PPI passed 1.5 million, accounting for half of all the complaints lodged with the ombudsman since its foundation in 2001.”

Sources

Financial Conduct Authority “Monthly PPI Refunds and Compensation” – 18.05.2016
http://www.fca.org.uk/consumers/financial-services-products/insurance/payment-protection-insurance/ppi-compensation-refunds

Financial Ombudsman “Annual Review – 2015/2016”
http://financial-ombudsman.org.uk/publications/annual-review-2016/ar16.pdf

The Telegraph “Borrowers making up to 4.000 complaints about PPI every week” – 26.05.2016
http://www.telegraph.co.uk/business/2016/05/25/borrowers-making-up-to-4000-complaints-about-ppi-every-week/

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