PPI Refunds Brings Pleasure To Customers And Economists

The refund of mis-sold PPI money to customers has come as a boost for the beleaguered UK economy. The overall impact is the same as that of a tax cut announced by the government. Individuals were sold PPI policies that they were not eligible to buy or that they did not need. Now that the scandal has come out in the open, banks have been compelled to set aside £10 billion towards compensation. As compensation reaches customers, more and more people are ending up with extra cash in their hands and this is giving a much needed boost to economy as a whole.

The refund of mis-sold PPI money to customers has come as a boost for the beleaguered UK economy. The overall impact is the same as that of a tax cut announced by the government. Individuals were sold PPI policies that they were not eligible to buy or that they did not need. Now that the scandal has come out in the open, banks have been compelled to set aside £10 billion towards compensation. As compensation reaches customers, more and more people are ending up with extra cash in their hands and this is giving a much needed boost to economy as a whole.

The Financial Times carried out in-depth research to understand the impact of refund of PPI money on the GDP of the country. It also conducted interviews with different individuals to find out what they intend to do with the PPI money that they have received. Many individuals spoke of the advantage of having the cash in hand when urgent and unavoidable expenses were pending. Further, such individuals spoke of how this money would be useful to finance a vacation in today’s tough economic condition. According to consumer association Which?, banks and financial institutions have repaid a total of £4.8 billion to victims of missold PPI policies and are in the process of finalizing claims worth another £5 billion. This association is very active in encouraging people to try and finalize PPI claims on their own without relying on third parties

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