A survey done by VoucherCodesPro.co.uk reveals that majority of consumers are using their PPI refunds to have vacation holidays or to purchase a new vehicle. A small majority only saves their refunds or uses it on clothing and gadgets. The survey also showed that UK consumers were quick to spend their PPI refund, contributing greatly to the UK economy.
Economists said the payout of £13.3 billion, which had already reached consumers, is equivalent to 1% of the UK GDP, a very effective “spend” signal that is better than quantitative easing or tax reductions. An increase in car sales from 2012 to the first quarter of 2014 is attributed to PPI.
An average PPI can pay out at least £2780-3500 for consumers. The amount is enough to afford medium-cost travel packages or a down payment for a new vehicle.
The survey showed that at least 19% of consumers who received their PPI compensation used it to purchase new home appliances. Some 17% of the recipients used the money to pay existing debt. The remaining saved the money or used them to buy apparel and groceries.
Mis sold PPI is the UK’s largest financial scandal in history with banks, including the Big Four major banks, setting aside £20 billion for mis sold PPI claims.