Lloyds Banking Group has recently confirmed that it has added another £4bn to their provision after predictions claimed there would be a further barrage of claims against the banking giant, who was single handedly responsibly for over half of the mis-sold policies.
Recent figures from the FCA indicate that the total payout since 2011 averages a huge £4.5Bn, with the average payout over £1,800.
Several surveys have examined what happened to this money after it’s been refunded. They discovered that the most popular uses of the money were holidays, new cars, and house hold appliances.
On average it was revealed that it took the refunded parties took just over two weeks to spend the money. Just over 10% put the money into some kind of savings account.
Figures from the high street strongly suggest that sales of holidays and cars have been boosted by PPI refunds into the public’s pocket.
The PPI boost is only part of the story. Regulators and banks have spent nearly £4bn processing claims and CMC’s have contributed to this also. In 2014 statistics from the labour market showed that it was one of the fastest growing areas of employment.