PPI payouts rise again, FSA figures reveal

Sept. 6, 2012 - PRLog -- Source : FTAdviser September 4th 2012

The City regulator revealed that PPI customers who were mis-sold their policy received a total of £614.8m in refunds and compensation in June, bringing the total amount paid out for mis-sold PPI since January 2011 to £5.4bn..

According to the regulator, the figures come from 24 firms that made up 96 per cent of complaints about the sale of PPI last year.

In a statement from the FSA, it said that, during 2011, the figures covered 16 firms which accounted for 92 per cent of PPI complaints, demonstrating an increase in not only the amount of complaints, but the number of firms against which PPI complaints have been raised.

The figure is set to continue to rise, despite warnings from the Ministry of Justice that it would crack down on inappropriate, unsoliticted and unsubstantiated clams emanating from claims management companies.

In August, the MoJ warned that CMCs which provide poor service could be forced to pay compensation or another form of redress to consumers.

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