PPI claims helping things along?

Graham_Devon

Just wondering what peoples thoughts are really.

There has been £2.9bn claimed in the first 6 months of the year alone. In total, banks have set aside £9bn of compensation.

I'm just wondering if this could, in a small way, be linked to the state of the economy? Would figures for retail etc be worse without this money?

The amount paid out in total much be into the 10's of billions, and it all started big time in 2010(ish). Complaints are going through the roof, but so it attempted fraud, with banks finding that claimants never even had PPI in the first place, rather just trying it on (this is linked to the annoying PPI claiming companies hassling everyone).

Also, how much of an effect could this be having on lending etc?

http://www.thisismoney.co.uk/money/saving/article-2209287/Banks-hit-PPI-complaint-7-SECONDS-customers-claim-nearly-3bn-compensation-just-months.html

wageslave

Have you made a claim Graham? Some of my work collegues have gotten, what seem to me, humongous amounts

kabayiri

There's a PPI company I know of here in the NW. They expect about 30% as typical commission on the claim. It's a decent return for filling in a few forms, although some of the banks can be a bit ar*ey to deal with.

No wonder they bombard us with calls!

Graham_Devon

wageslave wrote: »

Have you made a claim Graham? Some of my work collegues have gotten, what seem to me, humongous amounts

I have yer, though I only ever took PPI once unknowingly, I always made sure I didn't due to self employment. More fool me trying to do the right thing! My payout was in the 100's rather than the 1,000's others seem to claim!

sheffield_lad

I find it astounding that banks don't seem to mind the false claims.

Just how many folk were self employed? Very few and the ones who took it did so because a bit like electrical warranties they took the sales mans bait. Gold nuggets we called them (the ones who had warranty & PPI), but the suggestion that everyone was sold it incorrectly is a joke. Yet no one argues the case?

wageslave

I am contemplating a false claim as you type. It is the measure of a person. Will I lie and rip of a huge bank for a relatively small sum or will I live without a new kitchen?

sheffield_lad

Wage, if I had ever taken any I would also be claiming! But I sold it so knew not to ever ever take it out.

wotsthat

http://blogs.telegraph.co.uk/finance/andrewlilico/100015866/ppi-and-the-moving-gdp/

There's this from earlier this year. Apparently the amount set aside is worth 0.6% of GDP and it's going to be heading to people who are more likely to spend it straightaway.

Graham_Devon

wotsthat wrote: »

http://blogs.telegraph.co.uk/finance/andrewlilico/100015866/ppi-and-the-moving-gdp/

There's this from earlier this year. Apparently the amount set aside is worth 0.6% of GDP and it's going to be heading to people who are more likely to spend it straightaway.

That's why I'm wondering how much of an affect it's having on sales figures etc.

They could certainly be worse without them, but with the massive jump in claims this year, it's a bit like QE for the average family! I know someone personally who got over 8k, and bought a car outright with it. That's a car that otherwise may not have been bought, or a loan which would have been taken, not taken. They then sold their old car privately.

Loughton_Monkey

howee wrote: »

I find it astounding that banks don't seem to mind the false claims..

I think they do mind them because it takes a lot of work to process and look at them.

Same for the Ombudsman.

The banks made, I believe, a mistake. They were given deadlines - which they were miles from reaching - and they ended up trying to 'cleanse' themselves by writing a letter by the deadline. Some people read the letter as 'admitting' liability.

But I believe this will ultimately be 'rescued' by some smart 'final letters' that might have to say (a) Your claim is valid, (b) we admit liability, (c) for all the PPI premiums you paid. (d) in your own case, you paid... er... £0, and so (e) please find enclosed a cheque for £0.00 [But probably that's a slight exaggeration of what I was told].

If banks ever paid money to those who never had PPI, then that would be a huge scandal for the shareholders. But I believe there will be a lesser scandal in which they will routinely pay premiums back to those who did have it, but was legitimately sold.

wotsthat

Graham_Devon wrote: »

That's why I'm wondering how much of an affect it's having on sales figures etc.

They could certainly be worse without them, but with the massive jump in claims this year, it's a bit like QE for the average family! I know someone personally who got over 8k, and bought a car outright with it.

I couldn't find the article I was looking for. It was saying that the state owned banks were less robust in defending claims and implied that the government were using PPI as a form of QE.

I didn't really buy the conspiracy theory but more plausible than the petrol panic buying which had no effect on GDP.