Tuesday, 30 August 2011

Your PPI money is coming back

There's been a sharp acceleration in the payments of compensation for mis-sold Payment Protection Insurance. Payments reached £37m in May and £65m in June according to the Financial Services Authority.

The insurance, called PPI, was sold with loans to cover repayments if the borrower fell ill or lost a job. But the policies were widely sold to people didn't need them or would never have been able to claim.

The FSA says the scandal has left "an indelible stain on the financial industry's record". It is publishing compensation figures to measure firms' progress in making payouts.

They have a long way to go. Leading banks have set aside over £6bn to cover compensation for mis-selling the policies.

Payouts so far this year add up to £215m.

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