07
2012
PPI Claim Payouts Are Acting As Economic Stimulus
Posted by Rachel S. with 4 Comments
Image source: Confused.com
At least there’s one good thing coming out of the payment protection insurance (PPI) mis-selling scandal – a bolster to UK economy. The Office for Budget Responsibility (OBR) estimates around £6billion in PPI damages will be paid out to UK consumers this year which will increase our disposable household income by .5%.
These funds, although not intended to, could actually stimulate our flat-lining economy and the Financial Times says this “comes not a moment too soon.” So what are we using our PPI claims refunds for? Are we saving, paying down debt or splashing out?
Home improvements and holidays are the big ticket items we Britons are enjoying with our PPI redress according to the Telegraph. Elaine Overton, a Derbyshire pensioner, said, “When I heard I was going to get over £2,000 in compensation I hired builders to fix a long-overdue problem with the eaves in my roof and put the rest of the money towards a holiday to Greece in September.”
Image source: People.co.uk
The OBR says of PPI refunds, “It seems likely that the majority of these repayments will be made in 2012 and will provide some short-term support to household consumption growth.”
The good news is that you shouldn’t feel bad about spending your PPI refund rather than tucking it all away – UK Yahoo Finance says our economy is getting a bigger boost from us spending our PPI refunds than from government efforts to stimulate growth.
Image source: Budgetresponsibility.independent.gov.uk
Economic analysts say the refunds are functioning much like a tax cut and that consumers are enjoying the relief refund payments represent. With PPI refunds running £2,000-£3,000, it is a tidy sum that many households can certainly use and appreciate.
Daily Mail reports that the combination of banks making the claims process easier, along with claims firms working on behalf of consumers, mean more of us than ever are finally making our PPI refund claims. That’s good news for us and good news for the economy.
For consumers who think they still may be owed or want to investigate whether they had a PPI policy in place that may have been mis-sold, a reputable PPI claims firm may be the best choice. Because a number of the policies were automatically attached to loans or credit cards, you may not know that you had a payment protection insurance policy in place.
Image source: Sunjata.info
Also, in many circumstances where banks say there was no PPI policy sold, a claims firm or the Financial Ombudsman Service can push back and get the bank to admit that there was one. In about 25% of the claims initially rejected by the banks for having no PPI policy, turns out there was one and the consumer is owed a significant refund.
The sad thing is, many people will give up after the banks told them no and fully one-quarter are being lied to! So, as I’ve said before, it’s worth a call to a reputable claims firm or your bank to ask them to review your accounts and see if you’ve had a PPI policy, whether you knew it or not.
If you don’t do it for yourself, do it for the economy!
Empire Claims is the #1 choice for recovering money you are owed for PPI products, bank and credit card charges. Their No Win No Fee philosophy means you don’t pay a penny if they don’t win your claim. If you believe you’re owed a claim from your bank, lender or other creditor contact Empire Claims to get help right away!
[...] [...]
Just got my check – my claim co got me more than I thought possible after a reject from my bank. We’re going to Ibiza in October and then getting a “new” used car. Very excited to have PPI done with and a holiday on the books.
I spent my PPI refund and felt great when I did it. Best of British to all of you on getting your refund and splashing out a bit!
[...] As I wrote several weeks ago, one of the best ways to invigorate the economy is to splash out some of your PPI refund and treat yourself or your family. And the TalkTalk sponsored research by Cebr clearly indicates that shopping online will make the most of your redress funds. If you’re still waiting on your PPI refund or haven’t started the process, consider a reputable claims firm such as Empire Claims to help get what you deserve. [...]