The latest figures from the Financial Conduct Authority (FCA) show that £144.54 worth of PPI compensation has been paid out every second for the last three years. The total for the period January 1st 2011 to November 30th 2013 was £13.3bn, with monthly refund amounts varying from £28.6m in April 2011 up to £735.3m just a year later in May 2012.
[coolclock skin=”classic” radius=”120″ align=”centre” subtext=”Another second, another £144.54″]
In any other industry £13,300,000,000 would be a whopping amount of money to find; it’s more than the cost of the London Olympics, could build eleven Shard’s and is substantially more than the defence budgets of both Iran and Isreal. But a bank, well, a bank could make this back in a couple of years.
Here’s how it breaks down:
2 years, 11 months > £13,300,000,000, which equates to…
1065 days @ £12,488,262.91 per day
25,560 hours @ £520,344.28 per hour
1,533,600 minutes @ £8,762.40 per minute
92,016,000 seconds @ £144.54 per second
£144.54 a second! So since you’ve been on this page; this much has been refunded:
1065 days at £144.54 a second is £13.3bn refunded, but Britain’s banks and building societies have set-aside even more, £8.9bn more to be exact. Since April 2011 they’ve been gradually adding more and more to the PPI compensation pot as more claims land on their doormat. It currently stands at around £22.2bn, almost double the next nearest compensation scheme, private pension mis-selling, which totalled £11.8bn.
A cash windfall of £2,750 – the average industry refund – is always nice and according to a recent survey, most people are turning their newly reacquainted cash into a new set of wheels. But it’s not just financial consumers that have benefited from mis sold PPI. A new report from Citizens Advice says the companies handling the complaints have made up to £5bn.
Despite consumers and claims companies receiving a fair wedge from the PPI compensation pot, the banks are still very much ahead. The Financial Ombudsman estimates £50 billion worth of PPI policies were sold over the last ten to fifteen years and less than half of that has been set-aside. That said, we’re only just over three years in and the ‘claim deadline’ the banks would love to see implemented isn’t happening any time soon.
Thanks to Rick Power and Chintan Sarda for the snazzy counter! FCA figures available here.
By John Gregory
John writes for a PPIClaimsAdviceline.com as well as a number of financial blogs, he also create content for infographics, FAQ’s and personal finance sites. You can find him on Google+ and Twitter, get in touch – he doesn’t bite. Unless you’ve been mis-selling financial products.