| PPI Claims set to Double |
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| Written by Jon Hunter |
| Sunday, 21 February 2010 22:58 |
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Payment protection insurance compensation claims are expected to double over the next year say the FSCS (Financial Services Compensation Scheme). PPI claims come from the mis selling of payment protection insurance over the past few years.
Payment protection insurance compensation claims are expected to double over the next year say the FSCS (Financial Services Compensation Scheme). PPI claims come from the mis selling of payment protection insurance over the past few years. PPI insurance is offered to cover your loan or mortgage payments in the event that you either loose your job, become seriously ill or have a serious accident, however many of the schemes fail to payout promptly on these occurrences, and have been mis sold as a result. This has resulted in multiple claims for compensation from irate customers that amounted to 20 million pounds last year, and is predicted to rise to 40 million next year. THE FSCS is the government body responsible for making payouts to customers whose firms are no longer trading, and it is unclear whether it sees the increase in claims as due to a general increase in claims, or an increase in the amount of financial firms ceasing to trade. The Financial Services Compensation Scheme Chief Executive, Loretta Minghella said: "The FSCS will continue to play a major role in maintaining consumer confidence in 2010/11 by ensuring compensation when firms fail. "PPI claims will be an important driver of our business next year and will contribute to significant costs estimated at 50.5m" "Although the situation is fluid, our current assumption is that around 8,000 PPI claims will come in during the next year. That's almost double the number we expect this year. She continues in a vein which shows her main priority is to protect the consumer and not the industry."In such tough economic times, we recognise that the interim and annual levies will be unwelcome news for firms. We take great care in determining our indicative levies though our primary obligation is to deliver compensation to those entitled to our protection, DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Want to find out more about PPI Claims, then visit Dons LLP site on how to choose the best Mis Sold Payment Protection Insurance for your needs. |