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November 7, 2015 
Daniel Lee Financial Services Compensation Scheme chief says PPI claims will carry on for years despite the bill now topping £13bn
Britain’s financial services industry has not seen the peak of claims over mis-sold payment protection insurance (PPI), the head of the UK’s financial compensation body has warned.
Mark Neale, chief executive of the Financial Services Compensation Scheme (FSCS), said PPI claims would carry on for years despite the bill already topping £13bn.
Mr Neale, whose organisation helps consumers recover money when companies become insolvent, said: “We will continue to see firms fail with PPI liabilities and it’s too early to say we’ve seen the peak.”
PPI claims handled by the FSCS are expected to jump 20pc in 2014 to more than 16,000, according to its latest budget. “[Claims] will go on for a number of years,” he said. “I can’t tell you for how long, nor can I tell you when the peak of claims will be, but typically, you have a fairly normal distribution curve over the years.”
Complaints about mis-sold PPI – marketed as a way for consumers to protect their loan repayments if they fell ill or lost their job – have rocketed since 2008. More than £13bn has been paid out in compensation since 2008, the Financial Conduct Authority said. The Big Four banks have set aside more than £20bn to compensate customers. Monthly payouts reached £735m in May 2011, and despite signs claims were falling, payouts are steady at around £500m a month.
Original source (http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10655248/PPI-mis-selling-claims-have-yet-to-peak.html)
PPI yet to peak
November 7, 2015 Daniel Lee More than 1,000 complaints a day about mis-sold payment protection insurance (PPI) continue to be sent to the Financial Ombudsman Service despite a steep drop in numbers in the second half of 2013 compared with earlier in the year.
The ombudsman said the most complained-about financial institution in the second half of 2013 was Lloyds TSB, followed by Bank of Scotland, Barclays, MBNA and HSBC, though it said the ranking was not weighted for the number of customers each company has. The total number of complaints fell by 24% to 248,801 from 327,035 in the first half of the year. Only MBNA and HSBC saw an increase in complaints compared to the earlier period.
Original Source (http://www.theguardian.com/money/2014/mar/04/ombudsman-receives-1000-ppi-misselling-complaints)
FOS 1000 complaints
November 7, 2015 Daniel Lee
It is not over – Lloyds Banking group have set aside a further £750 Million to compensate PPI mis-selling in what has been the biggest mis-selling scandal of all time. UK banks have in total set aside over £17 billion pounds to compensate customers who were mis-sold payment protection insurance (PPI). Of the overall provision, Lloyds banking group have taken the majority of the stake holding a massive £8 Billion which includes £1.7billion for administration costs. The group, which is 33 per cent owned by the taxpayer, recorded statutory pre-tax losses of £440 million in the third quarter of the year. This is a huge increase compared with a £151 million loss in the same period last year, however no surprise as Lloyds Banking had become the most complained about financial business in the first half of 2013. Lloyds are now in talks with Britain’s financial regulator about the possibility of restarting dividend payments next year for the first time since 2008 and will set out its dividend policy alongside its 2013 results next February.
Lloyds bill raised
November 7, 2015 Daniel Lee The Co-operative bank has increased its provision by a further £105 million to compensate customers who were mis-sold payment protection insurance (PPI) and various other products. The provision will cover ‘’future costs for PPI redress, arrears charges and the processing of certain mortgage interest ‘first payments”’.
This matter arose as The Co-Operative Group this week lost control of its banking arm after a decision from investors rejected a plan to save the troubled firm. In June 2013, requirements from the Prudential Regulation Authority (PRA) said the bank needed to raise £1.5 billion to plug a capital shortfall.
Co-Op Group Chief Executive Euan Sutherland said on Monday he had reached an agreement in principle to save the bank. The member-owned group will now control 30% of the bank’s equity, less than the 75% proposed in the original rescue plan. Bond holders will now take 70% under plans to renovate the massive hole in their balance sheets.
Turmoil to the Group continued as their long-standing chairman Len Wardle announced today he will stand down in May next year once the bank’s capital restructuring is complete.
Mr Sutherland thanked Mr Wardle for his “leadership and commitment”, since he joined the Co-Op’s board in 1992.
Earlier this year the banking arm of the Co-Operative group reported a pre-tax loss of £709.4m.
co-operative provision
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November 7, 2015 Daniel Lee The latest figures from the Financial Conduct Authority (FCA) show the current cost paid out to customers in relation to mis -selling payment protection insurance has hit £12 BILLION.
(Source – Financial Conduct Authority)
The PPI mis-selling scandal showed no signs of decreasing in the first half of 2013 which drove complaints to a record high. The number of complaints received by the Financial Ombudsman Service went up by 140% in just one year, up to 3000 complaints a day at its peak.
In July 2013, £528 million was paid back to customers who complained about the way they were mis-sold payment protection insurance (PPI). Jumping to August, figures dwindled slightly but banks still paid out a whopping £446m.
The course of the year has surpassed all expectations with banks being fined on a monthly basis which generated a continuous rise to the amount paid back to clients.
“Disappointingly we are still seeing cases where businesses are not following our long-standing approach to PPI, resulting in long waits and unnecessary delays for consumers,” said Natalie Ceeney, the Chief Ombudsman.
The Financial Conduct Authority (FCA) collated its figures from the 24 firms responsible for 96% of mis-sold PPI complaints last year, with the final industry-wide bill expected to exceed the current amount.
PPI bill £12 Billion
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November 7, 2015 Daniel Lee
Clydesdale Bank has become the latest victim accused of cutting its compensation bill for Payment Protection Insurance (PPI) by destroying customer details. The concerns brought forward by HUNDREDS of potential claimants say their claims were dismissed as the bank was unable to provide account records dating back more than seven years.
Clydesdale says it has simply invoked the Data Protection Act, which states files should not be kept longer than necessary.
A recent statement provided by the Financial Conduct Authority said: “Whilst we acknowledge firms have their own data retention policies, this should have no impact on how they address a customer’s complaint that stretches back beyond that point.”
Clydesdale admitted it was “reviewing” its PPI complaints handling policy, including data issues.
This is the second time in a week the bank has faced scrutiny of its practices, early last week being fined £8.9m by the UK regulator for its treatment of customers regarding mortgage payments. What next?
clydesdale ppi complaints
