PPI Claim Payouts Are Acting As Economic Stimulus
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.”
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.
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.
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!