Employment group Manpower has said that more than 20,000 new jobs have been created simply to deal with PPI complaints. What’s more, this figure only takes into account the jobs that have been created at banks and lenders, and there are likely to be considerably more than this working within claims companies. While the new jobs are likely to be short term, unless there is another major financial scandal, they helped boost the final outlook of the quarterly review that is put together by Manpower.
Banks continue to count the cost of mis-selling payment protection insurance to consumers. Not only have the big banks had to increase the size of the financial pool that has been put aside to repay consumers for their PPI bills but they have also had to take on thousands of staff members to help deal with the workload that the claims and complaints have created. Lloyds are believed to have hired more than 6,000 people to deal specifically with PPI while HSBC has 700 staff, RBS has about 1,800 and Barclays around 2,500.
It isn’t just the banks and lenders affected that are taking on additional manpower either. The Financial Services Ombudsman, the group that is meant to be the final port of call for consumers or banks during these complaints, took on 1,000 new employees in 2012 to deal with payment protection claims and they have recently announced plans to hire another 1,000 during 2013. Whether claimants have been mis-sold PPI Northern Ireland, Wales, Scotland or England, they have the right to reclaim that money.
The FOS has said that it dealt with approximately a quarter of a million cases in the 2012 financial year and estimates indicate that this figure could rise as high as 330,000 during the current financial year. The banks have also had to greatly increase the amount of money that they have now set aside to try and ensure that they have the financial means to match the complaints.
Estimates vary but it is believed that more than 30 million payment protection policies have been sold since 2001 and they were sold alongside a wide variety of financial products. Consumers with mortgages, loans, credit cards, store cards, and other credit agreements are encouraged to check their terms and conditions as well as their payment breakdown in order to determine whether they were mis-sold a policy and whether they have the right to claim. With a typical mis-sold PPI Northern Ireland claim reaching a value of £2,500 it is worthwhile for claimants to make a complaint and pursue a case.
Payment protection insurance was introduced as a means of protecting consumers. It should have helped ensure that a change in personal circumstances did not lead to missed payments and defaults but this rarely proved the case. Low policy payment rates meant that the Courts were asked to investigate and following a protracted court battle, the banks opted not to contest the final decision. Consumers have been able to reclaim PPI ever since although there are many that believe the banks could do more to make the process simpler and more efficient for those affected.