About £22 billion is the existing deficit of the bank industry on top of the £32 billion earmarked for payment protection insurance.
The Financial Conduct Authority released figures that indicated £23 billion had been returned to consumers since 2011. Removing the earmark and estimates, the figures indicate about £11.5 billion was repaid to consumers, according to the Professional Financial Claims Association.
About £44 billion of PPI policies were sold between 1990 and 2010. The number of policies the PFCA and the FCA have yet to ascertain.
PFCA Chairman Nick Baxter said:
“Financial Conduct Authority figures show that around £23bn of PPI redress has been paid back to customers since January 2011. But the FCA figures include statutory and account interest which is typically half of the total redress figure paid back.”
He added: “If 75 per cent of PPI sales were mis-sold, which history already shows is a conservative estimate, there is at least another £22bn to be repaid to consumers.”
The PFCA created estimates based on consumer experiences with professional claims management companies.
Every customer offer letter from more than 20 banks and financial services groups indicated that only about £195,000 in estimate was paid out and only £102,000 in estimate had been paid out, which represents more than half of the total.