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UK FSA received £215m in redress in first half of 2011

The UK’s Financial Services Authority (FSA) has reported that 16 firms, which represents 92% of payment protection insurance (PPI) complaints received, have paid a total of GBP215m in redress during the first half of 2011.

The remaining 8% consists of approximately 400 other firms.

The data includes the value of ex-gratia payments made to complainants and cases settled by the Financial Ombudsman Service.

The data, to be published on an ongoing monthly basis, will serve as a measure by FSA to allow firms, consumers and other interested parties to keep track of the progress being made on an ongoing basis.

In May and June alone, following the dismissal of the industry’s legal challenge to the FSA and the (the Ombudsman), £102 million was paid out.

A step by step video guide has also been created, wherein the FSA’s head of consumer affairs, Chris Pond will explain the process of how to complain to financial services providers.

FSA’s conduct business unit interim managing director Margaret Cole said that the treatment of PPI complainants left an inerasable stain on the financial industry’s record.

"While the amount of redress paid in May and June is unsurprisingly large in the wake of the judicial review, looking ahead we expect the amounts to vary somewhat as firms clear their backlogs while dealing with complaints as well," Cole added.