The Lloyds banking group has reported a loss of £3.9bn for PPI settlements in 2011. These figures calculated up until the 30/09/11 confirm the huge number of settlements that Lloyds are reporting to pay to victims of mis-selling. Lloyds confirmed that during the 9 month period they spent £3.2bn covering the ppi settlements and that is why they have reported such alarming losses.

Not only have Lloyds lost significant figures for the mis-selling of ppi but it’s total business also fell 15% to £15.3bn indicating a decline in overall business transactions. These figures are certainly interesting ones considering the current economic climate. It is expected that Lloyds will now conduct an internal review into their operating procedures in an attempt to reduce costs and maximise revenues.

The number of complaints in regards to PPI mis-selling have dropped significantly. The FOS has has received 19,259 cases in the third quarter of this year which is down 66% from the previous quarter.

It is anticipated that the number of ppi complaints has reached it’s peak due to the mass media attention it has received in the last 12 months. Once lenders abandoned their high court action as a result of the ppi judicial review outcome a back log of over 200,000 cases had to be processed and this is why figures are now starting to decline. This was always anticipated by the FOS. One very positive thing to note however is that the FOS have confirmed that the percentage of complaints upheld in favour of consumers has increased to 92%.

It is expected that approximately 2 million ppi cases will be processed in the UK so if you haven’t already started your reclaim process now is your chance to do so. With effect from the 1st of January 2012 all cases will take no longer than 8 weeks to process and payout.