PPI Reached to Central Stage Results into Fall in Compensation

PPI was a big issue in media and financial world for last few couple of years. This financial product is still in news for banks trouble and consumer's compensation.

London, United Kingdom (prHWY.com) July 9, 2012 - PPI was a big issue in media and financial world for last few couple of years. This financial product is still in news for banks trouble and consumer's compensation. Several victims have been received financial compensation for mis sold PPI since May, 2011 after highest judiciary body of UK has given its decision in favor of consumers. However, it has been noticed that there is fall in compensation amount in current financial year. Last year banks have paid just £347 million to Mis sold PPI victims that are one third of previous year. It happens because of smaller compensation amount. When PPI compensation started by banks then they have paid big amounts to the victims.

Financial services compensation scheme has figured this statement. FSCS has also told that there is anger in investment companies as they were hit with £44 million to pay for next year compensation to the FSCS. There is £44 million rise in charge after an up to date analysis of claims assumptions for 2012-13 and compensation paid in previous year.

High profile investment failures like CF Arch Cru and MF Global is main reason of this increase. Potential claims results from the actions of investment agencies. According to new announcements of FSCS the organization has received 97,000 new claims in this year that is double of the claims filed in last year. Average payouts in 2011-12 were £4362 that is lower than year before payouts that was £6640.

FSCS has also added in its statements that estates of firms which collapsed at credit crunch height have returned back the cash. FSCS has recovered £673 million from the failure of major bank. It has received £30 million from estate of key data. This investment firm was collapsed in 2009.

It has been assumed by financial experts the PPI compensation will soon get an end as most of the consumers have already received the amount and others PPI claims process are in progress. Those who haven't filed yet for compensation should start the claim process now.

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Tag Words: ppi claims, ppi reclaim, mis sold ppi

Categories: Finance

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