The increasing numbers of consumers getting back their complete refunds were also music to the ears of UK economists. Experts said that payment protection insurance contributes heavily to the United Kingdom’s economic recovery as more households mobilize local economies and increase interests in properties.
An average PPI claim could cost around £3000-3500. However, lenders such as Halifax or HSBC could possibly introduce you to higher fees for your insurance policy. If you’re making a PPI claim from Halifax for example, their PPI and other financial repayment are also included in an increased interest rate.
According to economists £3000-3500 in cash instead of a tax deduction makes the money more a windfall and helps motivate people to spend. The motivation to spend, use the money as down payment for further investment or re-invest the money in the stock market helps the local economy, which improves prices.
The Office of National Statistics previously had a theory regarding PPI withholding consumer spending in the past few years. In the first two quarters of 2013, they reported a 15% increase in the number of car registrations with over 27,000 new vehicles named in different areas of the country.
The PPI scandal could be the most expensive scandal to hit the UK with a projected total of £20 billion, but the timing for economic recovery and better reclaiming services could not have been better.