Consumers who were mis-sold payment protection insurance (PPI) have so far received £215 million of redress, the Financial Services Authority (FSA) has revealed.
The FSA said the payments had been made in the first six months of the year, with £102 million paid out in May and June alone, following the High Court dismissal of banks' legal challenge to the FSA over PPI compensation.
It said that 16 firms, accounting for 92% of PPI complainants had made the payments.
Margaret Cole (pictured), interim managing director of the FSA's conduct business unit, said the regulator was releasing the figures to allow firms and consumers to keep track of progress made to resolve PPI mis-selling issues.
'The treatment of PPI complainants has left an indelible stain on the financial industry’s record,' she said. 'We remain 100% committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms’ progress to ensure this is done properly. Where we find that this not to be the case, we are not afraid to take tough action.'
However, the payments represent only a fraction of the expected redress from banks and other firms which sold PPI, which is estimated to reach £10 billion. Lloyds has been landed the biggest PPI bill among UK banks. It estimated it would face a £3.2 billion cost of providing redress.