£1bn Compensation

Official financial watchdog figures have shown that within the first 10 months of this year, payment protection insurance (PPI) compensation received by mis-sold consumers has topped £1bn.

This money has come from 16 unnamed banks and building societies who have accounted for 92% of all PPI complaints.

Payment protection insurance was originally sold to cover monthly repayments for consumers who have found themselves in the unfortunate position of not being able to pay their bills. However, many have now realised that the policies are useless.

The Financial Service Authority (FSA) disclosed that the highest monthly total for compensation was £268m in October 2011, accounting for a quarter of all claims made last year.

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