PPI Claims Still Going Strong Through First Quarter of 2014

PPI Claim

Recent figures show that PPI complaints remained reasonably steady through the first quarter of 2014. Though they have lost some steam since the very height of the scandal, they are still maintaining a lot of steam with payouts amounting to hundreds of millions of pounds each month.

These figures come from the Financial Conduct Authority and cover up to 96% of all claims. According to the data, January saw £389.2 million paid out to PPI claimants. This was followed by only a small dip in February, where £329.5 million was paid out over the course of the month. March saw the volume of payouts increase slightly once again, with £349.8 million paid to claimants.  While this may not rival the highest point of the scandal seen in mid-2012, these figures suggest that the PPI scandal may still continue for some time. The relative consistency of these figures also suggests that the winding down process may be a slow one.

The number of individual claims also remained high throughout the first quarter of the year. In the later part of this period, it was reported that more than a thousand people a day were still taking steps to claim PPI refunds through the Financial Ombudsman Service. Much like the more recent figures relating to the total month-on-month value of claims, these represented a drop compared to some past periods but nonetheless were taken to indicate that the scandal had a lot of steam left. In response to the figures, chief Ombudsman Tony Boorman said: “we’re still a long way from being able to say that PPI is sorted once and for all.”

In 2012, the total value of PPI payouts managed to exceed the half a billion pound mark for ten months in a row between March and October. The highest point of the entire scandal in terms of total payout volume came in May of that year, when £735.3 million was paid out to claimants in a single month. These dwarf the figures from more recent months and show considerable progress in reimbursing those who were missold PPI. Nonetheless, the number of complaints and high volume of payouts suggest that many people are still owed money in relation to the scandal. Many of these may not yet be aware of the fact.

Other revelations emerged this month suggesting some claimants may still have been underpaid. This could potentially further compensate the scandal and further prolong the process of paying back those who are owe money.