PPI has become the biggest financial scandal in the United Kingdom, earning over £23 billion for consumer PPI refunds. As banks scurry to provide recompense to aggrieved customers, PPI has actually delivered three kinds of benefits to the United Kingdom in unforeseen ways.
Customers earn an average of £3000 per mis sold PPI. According to a report by ING in 2012, it had helped the UK’s savings reappear and stay afloat in the economy. During the time, inflation has become a problem for ensuring the economy’s continuous drift amidst the Eurozone financial crisis. PPI has helped many to have some emergency money in case anything happens.
Last 2013, PPI refunds had guaranteed windfalls for many UK consumers. As the FOS received its record-breaking 263,000 claims during the second quarter of 2013, many consumers had received their refunds and had spent it on numerous items, helping give an equivalent of a 1% boost to the national economy. These items include car and home downpayments, consumer goods especially during Christmas, and property repairs.
Real industries have also benefitted from PPI mis selling. With over £16 billion now refunded to their rightful owners, UK’s spending had also grown into investments into real estate properties. This is further explained in this article by Dominic Laurie of BigIssue.com.