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PPI Claims 'Dominate' FSCS Workload

New figures have revealed that out of the £204 million that the Financial Services Compensation Scheme paid out during 2009/2010, over two thirds were awarded to those who had made a claim regarding payment protection services.

Because of the publicity and controversy generated by PPI law and rules over the last year, the FSCS noted that the claims related to PPI increased significantly throughout the year, climbing to exceed 2,400. The Compensation Scheme stated that it expects this number to increase through the duration of the 2010/2011 period.

This massive surge in claims by those confused by PPI Law and Rules has led to a big increase in the levy on brokers. Also, this expected further increase in PPI will lead to the FSCS issuing further decisions at the beginning of 2011 as it makes it’s financial end of year report.

Chief Executive of the FSCS. Loretta Minghella, stated that the Scheme had and would continue to play a ‘valuable role in promoting consumer confidence in 2010/11 by paying compensation when firms fail.’

Ms Minghella also noted that the Scheme’s current assumption was that ‘around 8,000 PPI claims’ would come in within the next year. ‘PPI claims will be an important driver of our business next year and will contribute to significant costs estimated at £50.5m in the general insurance intermediation sub-class,’ she concluded.

For more information on PPI laws and rules, and how you could potentially reclaim up to and over £10,000 in reclaimed PPI payments, fill in the Credit Line Contact Form by following this link now.

Posted by Shaun Edwards on 28 Jul 2010

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