PPI Compensation Fund Set to Run Out as Claims Double, Says PPI Reclaims Company Missoldppiclaims.info

Manchester, United Kingdom, November 21, 2012 --(PR.com)-- Which? has been keeping a running total of complaints compared to the actual size of the PPI fund have allocated to deal with claims and compensation. All estimates so far have shown that the fund could run out as early as January 2013.

According to the Financial Services Authority, Claims for PPI have rose to 2.2 million in the first six months of 2012, which is almost double the amount compared to the previous year. If the number of complaints continue to climb in the same way over the second half of 2012, the allocated funds are almost certain to run out.

Which? has calculated that both Lloyds and Barclays need to identify more money to set aside for paying the upheld claims as a matter or urgency, something which Lloyds has already begun with a bonus clawback from its bankers in February. Some £2m was taken back from the 2010 bonuses of 13 employees at Lloyds, including chief executive Eric Daniels, and earmarked for the compensation pot. Which? predicts that Royal Bank of Scotland and HSBC have a little longer to prepare, as their funds are likely to run out by June and August respectively based their PPI claims level. Some are calling for the top earners in both banks’ to have their bonuses clawed back in a similar fashion to Lloyds in preparation.

Which? chief executive Peter Vicary-Smith, said: “With well over two million PPI complaints being made in just six months, PPI is now the biggest financial scandal of all time. The banks must set aside more money for PPI Claims and make it easier for customers to get back what they are rightly owed, without any hassle.”

Which? has been campaigning for a change in the conduct and culture of the banking industry, including that:

· Customers be put first, not sales
· There should be professionals standards and codes of conduct
· Mis-selling and bad practice should be punished

“Consumers are continually being short-changed by the banks. We’re campaigning for Big Change in the culture of banking to put customers first, not bankers and protect the public suffering from further mis-selling and scandals,” said Mr Vicary Smith.

A spokesperson from PPI Claims company, Missoldppiclaims.info said: “The banks have been gradually increasing the amount of compensation they set aside over the last few years. From an initial estimate of £3bn, the amount needed has risen periodically until it stood at £9bn earlier this year. It looks as if that still won’t be enough.

“Banks need to be doing something about it now while they have the time. They should be taking the concerns of Which? very seriously.”