PPI mis-selling payouts hit £215m in first half of 2011

FSA The FSA has upheld three out of four PPI complaints

Related Stories

Consumers mis-sold payment protection insurance (PPI) have received £215m of compensation this year, according to the Financial Services Authority (FSA).

The cash was paid out by 16 unnamed firms, representing 92% of PPI complaints made between January and June this year.

The payouts follow the dismissal by the High Court of the banks' challenge to the PPI compensation rules in April.

In May and June alone, £102m was paid out to customers.

The monthly totals for the first six months of the year were: £29m in January, £31m in February, £28m in March, £25m in April, £37m in May, and £65m in June.

Compensation bill

A string of High Street banks have set aside cash to settle PPI complaints.

Lloyds' £3.2bn PPI compensation bill is the largest of any UK bank. Barclays is setting aside £1bn, RBS £850m and HSBC £269m.

Start Quote

The treatment of PPI complainants has left an indelible stain on the financial industry's record”

End Quote Margaret Cole FSA

The figures released by the FSA also included payments made after rulings by the Financial Ombudsman.

The independent body which rules on financial cases not settled by banks, has revealed it has received more than a quarter of a million PPI complaints in total, with a record 104,597 received in the last financial year.

It said it had upheld three out of four complaints, with an average payout of £2,750.

Margaret Cole, interim managing director of the FSA's conduct business unit said: "The treatment of PPI complainants has left an indelible stain on the financial industry's record.

"We remain 100% committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms' progress to ensure this is done properly."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

Copyright © 2018 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.