PPI redress soars to new high

Payment Protection Insurance (PPI) redress totals have reached a new peak after payments rocketed by more than £100m in just one month.

According to latest figures from the FSA, £379m was paid in redress to customers in November, a massive 41% increase on October's previous high of £268m.

The total paid rapidly approaching the £1.5bn level after it smashed through the £1bn mark a month earlier.

The Financial Ombudsman Service (FOS) recently revealed plans to make firms who contribute more than 25 cases pay £350 per case to fund the service.

This could potentially add a further £55m to the annual bill for the biggest PPI missellers.

The data comes from 16 firms which together received 92% of all PPI complaints made in the first half of 2011, including those most likely to be hit by the new FOS fee.