£730m paid out in PPI redress in May

 

The FSA has announced it’s latest monthly update on the amount of payment protection insurance (PPI) refunds and compensation that are paid to customers who were mis-sold a PPI policy

In May 2012, £730.5 million was paid out to customers who complained about their PPI sale. Therefore, since the start of 2011, £4.8 billion has been paid out in refunds and compensation for mis-sold PPI.

These figures come from 24 firms that made up 96% of complaints about the sale of PPI last year. During 2011 the FSA covered 16 firms which accounted for 92% of PPI complaints.

Payment protection insurance (PPI) covers loan or debt repayments if you are unable to meet them in certain situations, such as being made redundant or not being able to work because of an accident or illness.

You may have been offered or sold a PPI policy at the same time as you took out a loan, mortgage, credit card, store card, car finance or other credit. However, from 6 April 2012 a firm generally can not sell PPI at the same time as you take out credit.

You do not have to buy PPI from the same firm and it usually pays to shop around for a deal that is right for you.

This type of cover may also be called loan protection, credit insurance, loan repayment insurance, ASU (accident, sickness and unemployment) insurance, account cover or payment cover.

 

 

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