Financial services companies paid £215m worth of compensation to consumers who complained about the way they were sold payment protection insurance during the first six months of 2011.
New FSA data shows that 16 firms, representing 92% of PPI complaints received in the first half of 2011, have paid a total of £215m in redress between January and June.
Nearly half of the payments (£102m) occurred in May and June following the dismissal of the industry’s legal challenge to the FSA and the Financial Ombudsman Service (FOS) over the latters’ handling of PPI complaints.
The monthly totals, with cumulative totals in brackets, are:
- January - £29m(£29m)
- February - £31m (£60m)
- March - £28m (£88m)
- April - £25m(£113m)
- May - £37m (£150m)
- June - £65m (£215m)
FSA conduct business unit interim managing director Margaret Cole said: “The treatment of PPI complainants has left an indelible stain on the financial industry’s record. By releasing these figures we’re providing a useful measure of firms’ progress that can be tracked on an ongoing basis.
“While the amount of redress paid in May and June is unsurprisingly large in the wake of the judicial review, looking ahead we expect the amounts to vary somewhat as firms clear their backlogs while dealing with complaints as well.
“We remain 100 per cent committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms’ progress to ensure this is done properly. Where we find that this not to be the case, we are not afraid to take tough action.”
The FSA’s figures include the value of ex-gratia payments made to complainants and cases settled by the Ombudsman. The FSA has said it will continue to publish the data on an ongoing monthly basis accompanied by a running total.
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