MSE News: PPI compensation tops £1 billion for the year

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This is the discussion thread for the following MSE News Story:

"The Financial Services Authority has today revealed £268m was paid out in October, the highest month on record ..."

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  • Esoog
    Esoog Posts: 1,489 Forumite
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    Wonder how much Lloyds have paid out? Because we're still waiting from since August....
  • oldvicar
    oldvicar Posts: 1,088 Forumite
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    A stunning amount paid out so far by the banks. Maybe it is partly because:
    These rules force banks to .... offer money back, even to borrowers who have never complained

    It's almost incredible that so many people bought (or were 'sold') so many expensive policies with hardly anyone knowing what they were getting in to. A real need for financial education, compulsory or otherwise, and then something like this won't happen again ??
  • KxMx
    KxMx Posts: 10,618 Forumite
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    I think it should be much higher- Mum was told they had no record of her claim. So she re-sent the proof covered in highlighter and got an offer of 3k. How many have been told the same and given up?
  • krisskross
    krisskross Posts: 7,677 Forumite
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    A friend of mine tells me they have had thousands of pounds back even though they wanted the protection and on a couple of occasions claimed on it.

    Beggars belief to me that people are getting refunds on something they wanted and asked for.
  • crayfishuk
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    It P's me off that I'm careful with my money and make (hopefully) informed decisions on whether something is worthwhile spending out on... yet I end up penalised by proxy.

    All those people who are foolish enough to be parted from their money are being bailed out yet again... It's like a parent with a spoiled kid - they'll always be bailed out. It's raising the expectations that people need have no responsibility for their own actions - it's always someone else's fault.

    And to hear that people are allowed to claim it back --- even when they've made claims against the policy!!!!

    No wonder the banks and insurance companies raise premiums and charges - they can never tell when they'll have their business ripped out of their hands.
  • Esoog
    Esoog Posts: 1,489 Forumite
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    crayfishuk wrote: »
    It P's me off that I'm careful with my money and make (hopefully) informed decisions on whether something is worthwhile spending out on... yet I end up penalised by proxy.

    All those people who are foolish enough to be parted from their money are being bailed out yet again... It's like a parent with a spoiled kid - they'll always be bailed out. It's raising the expectations that people need have no responsibility for their own actions - it's always someone else's fault.

    And to hear that people are allowed to claim it back --- even when they've made claims against the policy!!!!

    No wonder the banks and insurance companies raise premiums and charges - they can never tell when they'll have their business ripped out of their hands.

    Whilst there are no doubt many people reclaiming just because they can, let's not forget there's plenty of people that were actually mis-sold something they didn't want. In lots of cases people were told "you can't have this loan without PPI" for example, which is mis-selling.

    As for claiming on a ppi that has paid out; there's obviously a reason the banks are paying out on these (ie evidence of mis-selling?)
  • grastaff
    grastaff Posts: 102 Forumite
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    crayfishuk wrote: »
    It P's me off that I'm careful with my money and make (hopefully) informed decisions on whether something is worthwhile spending out on... yet I end up penalised by proxy.

    All those people who are foolish enough to be parted from their money are being bailed out yet again... It's like a parent with a spoiled kid - they'll always be bailed out. It's raising the expectations that people need have no responsibility for their own actions - it's always someone else's fault.

    And to hear that people are allowed to claim it back --- even when they've made claims against the policy!!!!

    No wonder the banks and insurance companies raise premiums and charges - they can never tell when they'll have their business ripped out of their hands.

    Let's not forget that many of these policies were in fact sold to people that didn't need it but were in need of the loan which was sold with PPI as a package i.e you don't take out the insurance you probably won't get the loan.

    I find it incredible that you tar everyone with the same brush and do you really think that if there was not a case to answer that the banks would have been instructed to investigate and pay back this money?

    It is very much a case of these banks making money out of the people that can least afford it as is often the case. Far from the prudent being penalised and people being bailed out it is recognition that these policies were in fact being mis sold and people being forced into taking them out which may in some cases itself caused them hardship.

    Those of us who have full control over these things i.e. choice of loans/interest rates/best offers etc should consider ourselves fortunate, not everyone is in that position.
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