Post the fall out of the Payment Protection Insurance scandal, banks have been forced to put aside millions of pounds to compensate the customers who they had wrongly taken money from. The victims of the bankers were everyday people who had taken out mortgages, loans or credit cards, and had been opted into this additional insurance product without their knowledge, consent or had been told it was a compulsory purchase they had to take with their borrowing. Many were signed up for PPI who were not ever even eligible for the product as they were retired or self-employed and could never have made a claim on the payment protection insurance policy – thereby meaning they were paying premiums for an insurance that was completely useless to them.
The good news however is that for the thousands of people who the banks wrongfully took money from, there is the likely possibility to getting their money back. They can go to a PPI claim company to get a refund for them or lodge a PPI claim directly with their bank, either way, more than £13 billion has been paid out in refunds from the banks and there are still actual billions waiting to be claimed (many people still aren’t aware if they ever had PPI or may be eligible so its worth checking!).
The average payout in a single PPI claim is £2,750. And what do us Brits do with the money we receive in compensation? A survey conducted into this very question by online site VoucherCodesPro.co.uk reveals that the most popular thing to do is spend it on a holiday. Just under a quarter of all respondents chose to do so, with buying a new car coming second place at 22%.
The payout money was on average used for spending in some form within three weeks. Household appliances (19%) and furnishings (13%) were high up in the list, and other items such as clothes, gadgets and shoes were also in the top 10: numbers 7 to 9 respectively. 17% used the money to pay off bills, whilst only 12% decided to save any of the money.
The additional consumer spending that the PPI claims payouts have fostered are therefore responsible for a huge boost to the UK economy, much needed in these austere times. The bankers have, however inadvertently (with all their blunders and misappropriations), actually helped the economy after all.
If you feel that you may have been mis-sold PPI, why not try an online PPI rebate calculator to figure out how much you may be owed. Most PPI claims companies offer a free PPI check or can look into you case on a no win no fee basis, so it won’t cost you a thing if you’re not eligible.