7th January 2013
The Times uses the FSA’s monthly PPI payout figures and historic selling data to make its calculations.
In November, the Bank of England set out in its Financial Stability Report an additional £4bn to £10bn in costs, on top of existing provisions, to cover fines and customer compensation.
The report also suggests that under a “worse-case scenario”, the costs of PPI could be as high as £40bn, if banks are forced to pay back every fee they generated over more than a decade.
The Times says banks were receiving 200,000 PPI refund requests a month last year. FSA figures show that the amount paid back in October 2012, the last month for which figures are available, was £534m, a rise on September, taking the total amount paid out to more than £7.5bn.
Source: The Times / Money Marketing
Posted in PPI, UK, Mis-selling Scandal, PPI Claims, PPI News