27 July 2015
Payment protection insurance (PPI) is now infamous but, customers are enjoying compensation windfalls after being mis-sold the insurance product that should have made repayments on their account, if they were unable to do so.
When the compensation ball really started to roll, the money being paid on a collective basis per month stretched in to millions. But, it seems that PPI payments are beginning to slow and this could have an impact on the high street.
Many people received a few hundred pounds in compensation, whilst won back thousands. One self-employed business woman walked away with £84,000 and all this means that at a time when the recession was biting hard, people had money in their pockets.
And, it seems, they were not frightened to spend it. From holidays to cars, clothes to shoes, people with PPI compensation cheques went out and not only bought luxuries, but essentials too including groceries.
The car industry also faced a welcomed boost with 22% of those in receipt of substantial PPI compensation windfalls buying a new or nearly new car.
But, as the rate of compensation begins to slow - but the PPI compensation saga is not about to end any time soon - many financial analysts fear this could have an impact on the high street. Large electrical retailers have announced strong growth in their sector, not surprising when you consider a large percentage of customers bought white goods and gadgets with their compensation monies.
But, the PPI compensation saga was never going to last for ever and many analysts believe that 7 in 10 people who have a claim have already made their claims. However, we are still talking billion of pounds in compensation and for the individual, the average is now calculated to be a £3,000 pay out.
There are still many people who have an eligible claim who are yet to make their claim for PPI cash. And there could still be some big pay outs to be made yet too. Banks are still being cautious with their predictions for how much more they will need to add to their compensation pots and thus, anyone with a claim is urged to take another look at their paperwork.
By law, your bank or lender has to tell you if you have a PPI policy on your account and once you have this information, Scottish PPI Claims could help you make your claim. What will you spend it on?