Leading high street banks and lenders caught up in the payment protection insurance (PPI) scandal have paid out an incredible £557 million in compensation as a result of mis-selling the product.
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Hundreds of thousands of people across the country have been a victim of the scandal, with banks and lenders taking money from consumers without their knowledge..
Since the scandal unfolded earlier this year, angry consumers have complained to the Financial Ombudsman Services (FOS) in their hundreds of thousands. They feel that they are simply seeking compensation for money which was rightfully their own in the first place.
The FOS has seen the number of claims for mis-sold PPI rocket with more than 3,000 a week in the last two months. The FOS has, in fact, been swamped with so many consumer complaints about the controversial insurance that it has had to hire additional staff.
The FOS has up-held nine out of 10 PPI cases in favour of the consumer, with compensations pay-outs ranging from £200 to more than £10,000.
One law firm managed to secure a staggering £142,000 settlement for mis-sold payment protection insurance last month. The client had purchased two PPI policies from a credit card supplier in the early 1990s. It is believed that this is the biggest compensation pay out on behalf of a single client to date.
Several of the banks who were forced to cough up compensation are now under pressure to reconsider bonuses to top executives. Lloyds bank, which is 41% owned by the taxpayer, set aside £3.2 billion to settle mis-sold PPI claims.
It has since reported a significant loss of profits and is now having to reconsider awarding bonuses to senior executives.
HSBC said it was also putting aside £270 million earlier this year for claims, and the Royal Bank of Scotland have also made an £850 million provision.
For advice on how you can claim, visit our partners Immediate Financial