2019 has been a busy year for The Claims Guys – and for the Payment Protection Insurance (PPI) industry! Whilst 29 August 2019 marked the deadline for submitting Claims for Mis-sold PPI, 2019 has proved one of the busiest years on record… and it’s not the end.
At the beginning of February 2020, we were delighted to announce that we have helped over 470,000 of our customers claim back over £1billion for Mis-sold PPI.
Whilst the PPI deadline is now in effect, our journey to help even more of our customers is by no means over. The Claims Guys is working with a number of Legal Partners to pursue potential Plevin PPI Claims. Although the deadline for submitting Claims regarding mis-sold PPI has passed, there is still an opportunity to investigate whether you are entitled to Compensation if your PPI policy payments included undisclosed commission charges. You are able to find out further information here.
Join us in reflecting on some of the biggest news within the industry during 2019:
The Regulator required Lenders who sold PPI to write to around 150,000 customers who had previously had PPI Complaints rejectedi. The purpose of the mailings was to make it clear that the customers may be eligible to make a new Complaint under the Plevin ruling.
The Financial Ombudsman Service (FOS), the organisation responsible for settling disputes between consumers and financial organisations fairly and impartially, announced that the Regulator had confirmed an increase in the funding available for consumers. From 1 April 2019, the FOS can award up to £350,000 to consumers (where the complaint occurred after this date). For all other complaints, the FOS can award up to £160,000ii.
Lloyds Banking Group (LBG) announced a further investment of £100 million to cover PPI redress (including administrative costs). By August 2019, this figure had risen to £1.8 billioniii.
With the deadline looming, the high street banks began announcing more and more funding that was being put aside to cover PPI redress (including administrative costs).
The announced costs of PPI funding in 2019 included:
- Lloyds Banking Group (LBG) – £1.8 billioniv
- Barclays – £1.4 billionv
- Royal Bank of Scotland – £900 millionv
- Virgin Money (including Clydesdale Yorkshire Bank) – £450 millionv
- HSBC – £302 millionvi
- Shop Direct – £241 millionvii
- Santander – £169 millionviii
- Co-op Bank – £60 millionix
- Tesco Bank – £45 millionx
Post-PPI deadline, the high street banks took stock and some began reporting on the volume of Complaints they had received.
Clydesdale Yorkshire Bank (CYBG) stated they received eight months’ worth of requests for information about potential Claims in just one month, with approximately 340,000 in aggregate over five weeks. 120,000 of those were received in the final three days before the PPI deadline. Perhaps unsurprisingly, after this announcement, CYBG’s share price fell by 20%xi.
The total pay-outs for PPI Claims has been rumoured to cost the banks £53 billion (including administrative costs).
The Regulator reports a delay in financial organisations handling PPI Claims due to an “unprecedented volume of PPI checking enquiries and complaints”xii. It has since been announced that Final Responses may be delayed until summer 2020xiii.
At the same time, banks made further announcements regarding their profit margins post-PPI. Santander reported a reduction of 43% in their pre-tax profits, whilst LBG announced that their third quarter profits had been ‘almost wiped out’ at the figure of £50 million – a reduction of £1.8 billion from the same three months in 2018xiv.
Shop Direct – including the likes of Littlewoods and Very.co.uk – announced they had to seek an additional investment of £150 million to meet the soaring costs of PPI (including administrative costs)xiv.
Now 2020 is firmly underway, we are continuing to help our customers finalise their PPI Claims.