A story in the FT reports figures from the Financial Conduct Authority (FCA) which confirms banks have only paid out £23bn since January 2011, but half of this is interest, so just £11.5bn of premiums have been repaid.
The data from the FCA showed statutory and account interest which is typically half of the total redress figure paid back, said the Professional Financial Claims Association (PFCA).
“If 75% of PPI sales were mis-sold, which history already shows is a conservative estimate, there is at least another £22bn to be repaid to consumers,” said a spokesman.
The FT story suggests some banks are receiving claims dating back as far as the 1980s, with interest representing a substantial sum.
The PFCA’s estimate is based on customers’ experiences at a range of professional claims management companies.
Banks have set aside more than £32bn to date, out of which the £23bn has been paid suggesting there is not enough to cover the extra £22bn estimated by the PFCA.
The FCA is deciding whether to impose a two-year time bar on PPI claims, in a move to draw a line under the scandal.
“Financial institutions are still putting too many barriers in front of consumers who make legitimate complaints. Such firms should not be rewarded for such bad behaviour with an artificial cap on their responsibilities,” said the PFCA.
However, figures from the Financial Ombudsman Service suggest banks are still incorrectly turning away a number of PPI claims. From April to December last year, the ombudsman received 141,000 complaints, and found in favour of the consumer in 70% of cases.
