PPI Claims Good for the Economy? [13th Aug 2012]
Economists have pointed out that the compensation being paid out to those affected by PPI mis-selling is actually offering a boost to the economy, with people using the windfall to pay for luxuries such as holidays and home improvements. The Independent Office for Budget Responsibility, the government official economic forecaster has said that £6 billion would be delivered back into the economy via PPI refunds over the course of this year. This could contribute to the forecast of household income growth of 0.5%. Banks have said that they are putting aside £9 billion to cover PPI compensation payments and average claims are between £2,000 and £3,000 - a substantial sum for most households. Experts have suggested that PPI compensation is an effective way to move money from banks and into the pockets of consumers and could be more effective than recent government measures designed to improve lending rates. (Note: if there is one thing this crisis has proved, it is that economists do not understand the economy. If UK people use their money to buy items imported from China, then most of the money will be leaving the country. Boosting China's economy as they will have more money to go around, not the UK.) Of course, this windfall of PPI compensation is only going to people that failed to read small print or check themselves that PPI was necessary. Those that were savvy enough to realise they did not need it, will undoubtedly end up paying higher charges to banks overall as they attempt to reclaim the lost money. It's not like the bankers themselves will take the money out of their own pockets, is it? Related Stories: PPI refunds from banks boost ecomony - www.thisismoney.co.uk The organisers behind an agricultural show which was forced to cancel over the weekend have asked for compensation after the field due to be used was over-run with sewerage when a pumping station failed. The 139th Agricultural Show near Walton could be the last if the organisers cannot get compensation. It was called off after the contamination which was cleared by Anglian Water. However organisers were forced to wait 24 hours before they could use the area by which time it was too late. Graham Shingfield, from the show committee has said that they spoke to health and safety officials and felt they could not guarantee the safety of their visitors. Anglian Water had not told them they had to cancel the show. Money which had been put aside for this eventuality will need to be used to pay hire charges and staff and there will be nothing left over. This means that next year's show cannot go ahead as a one year buffer is required by law. They are in negotiations with Anglian Water, who accept responsibility for the station malfunction, over possible compensation. Related Stories: Wayland Show seeks sewerage leak compensation - www.bbc.co.uk A family who had squatters move into their home due to problems with their local council have accepted compensation of £12,368. The Faggetter family received the compensation from Lambeth Living, the management company which looks after property maintenance for West Norwood council owned homes. The family have lived in the property for 30 years and say they lost seven years of their lives due to mishandled repairs to the property. In 2009 the family were made to vacate the premises during which time squatters moved in. They have also had to live out of boxes while intermittent repairs to structural defects were made. The family has been fighting for compensation for years and finally received it when they approached the Ombudsman. Mr Faggetter says that this is unacceptable and his local councillor agrees saying that the company has failed to face up to the hardship they have imposed on the family. Related Stories: Family compensated after council repair work - www.yourlocalguardian.co.uk A battle for £100,000 in compensation has been launched by a biker who was injured in crash in Germany. Steven Brewer fractured a vertebra and his wrist in the accident which left him disabled. He has been unable to return to work and says he is too anxious to ride a motorcycle due to post traumatic stress disorder. He has been told he cannot carry out tasks which require him to carry weights of more than 5kg or any DIY or basic cleaning tasks. The accident involved a crash with a Swedish driver in Germany and it is the insurer of the driver which is being sued in the High Court. The insurer has admitted liability, but the amount of compensation has not been agreed. Related Stories: Atherton motorcyclist hurt in Germany seeks £100,000 compensation - www.theboltonnews.co.uk  |
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