The Financial Services Authority (FSA) today published details of the amount of redress paid by firms during the first six months of 2011 to consumers who have complained about the way they were sold payment protection insurance (PPI).
The data shows that 16 firms, representing 92 per cent* of PPI complaints received in the first half of 2011, have paid a total of £215 million in redress between January and June 2011 inclusive. In May and June alone, following the dismissal of the industry's legal challenge to the FSA and the Financial Ombudsman Service (the Ombudsman), £102 million was paid out.
The monthly totals, with cumulative totals in brackets, are:
* January - £29 million (£29 million)
* February - £31 million (£60 million)
* March - £28 million (£88 million)
* April - £25 million (£113 million)
* May - £37 million (£150 million)
* June - £65 million (£215 million)
The figures include the value of ex-gratia payments made to complainants and cases settled by the Ombudsman.
The FSA is publishing this data as a simple measure to allow firms, consumers and other interested parties to keep track of the progress being made. The FSA will continue to publish this data on an ongoing monthly basis accompanied by a running total.
The FSA has also created a step by step video guide featuring the FSA's head of consumer affairs, Chris Pond, explaining the process of how to complain to financial services providers. You can view this video now on the FSA website.
Margaret Cole, interim managing director of the FSA's conduct business unit, commented:
* "The treatment of PPI complainants has left an indelible stain on the financial industry's record. By releasing these figures we're providing a useful measure of firms' progress that can be tracked on an ongoing basis.
* "While the amount of redress paid in May and June is unsurprisingly large in the wake of the judicial review, looking ahead we expect the amounts to vary somewhat as firms clear their backlogs while dealing with complaints as well.
* "We remain 100 per cent committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms' progress to ensure this is done properly. Where we find that this not to be the case, we are not afraid to take tough action."
* the remaining eight per cent consists of approximately 400 other firms.
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