The BBC estimated in August a total of GBP 16 billion was paid out in PPI compensation. But UK regulator Financial Conduct Authority (FCA) said that firms would look again at cases in 2012 and 2013 where claimants could have been treated unfairly.
In June 2014 the BBC broadcast the results of its investigation into the PPI fiasco and highlighted concerns over compensation issues.
Payment protection insurance (PPI) sold by banks and credit card companies in the UK purported to cover repayments in the event of redundancy or ill-health but was widely missold.
FCA Chief Executive Martin Wheatley said, “Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where its due, is an important step in rebuilding trust in financial institutions.””Given the enormity of this exercise, it is no surprise that there have been some issues along the way, but our approach is delivering a good result for consumers.”
Although Wheatley said that there had been an improvement in complaint handling by financial firms, consumers interviewed by The Middle East in Europe this month (August 2014) said some banks and credit card companies were still using bogus companies and publishing ‘dud’ contact numbers for complainants that were never accessible.
Seven out of 10 claims of misselling of PPI have been upheld in the customer’s favour, the BBC says.
About 3.2 million letters have been sent to people believed to have been missold PPI but who have not submitted a compensation claim, with another two million still to be sent out.