PPI wait could lead to debt management

The sheer volume of people hoping to get compensation for being mis-sold Payment Protection Insurance (PPI) could lead to many needing debt management whilst they wait for settlement.

This comes as the Financial Services Authority (FSA) announces that as many as 2.75 million people could be due to be refunded a total of more than £2.5bn.

The FSA estimates that people who were sold regular-premium PPI would receive around £900 on average, whilst those who were mis-sold single-premium policies would receive double that amount.

However, the FSA indicates that PPI firms have been turning down around half of the compensation claims, meaning that people have had go to the Financial Ombudsman Service (FOS).

This amount of people going through one body will slow down the processing of claims, meaning that people with money problems may need to seek debt management if they can’t wait for their compensation to be paid.

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