The Financial Ombudsman Service said that the record 10,000 complaints per week represented a doubling of the rate seen during the previous three-month period.
And what’s more, in nearly two-thirds of cases, the ombudsman found in the customer’s favour. It’s no surprise, then, that in 2012, banks were collectively paying out an average of about £530m a month in compensation.
In case you’ve been on holiday in outer space and have somehow missed the whole PPI thang, it all kicked off because payment protection insurance sold alongside loans and credit cards was designed to cover the repayments if you lost your job or got too ill to work.
In literally millions of instances, the PPI was not needed, and would not have paid out even if the customer had attempted to claim. The scandal has received a lot of publicity, so banks have had to deal with a torrent of complaints for months on end.
They have collectively set aside around £13bn to cover the compensation costs, but it is though by some analysts that this total may have to rise further.
Predictably, the banks have requested that the FSA announce a deadline by which customers have to have made their complaints about mis-selling, but the regulator will not (as yet) do such a deal.
For more MT coverage on the PPI scandal, click here, here and here.