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Surge in demand for banking staff to handle explosion in PPI compensation claims

Surge in demand for banking staff to handle explosion in PPI compensation claims

FSA expects new wave of claims with 12 million letters issued

The number of contractors hired by banks to handle the huge increase in Payment Protection Insurance (PPI) compensation claims rocketed in the first quarter of 2012, says BrightPool, the specialist financial services recruiter.

According to figures from BrightPool in the first quarter of 2012:

60% of the demand for claims handlers were to work in PPI compensation schemes departments

46% of the demand for Project Managers was to work in PPI compensation departments

PPI was designed to cover people’s personal loans in the event that they were to lose their income due to illness or unemployment. Millions of people were miss-sold the product and some had the policies added to their loan contracts without being told, some were threatened with having their loan withdrawn if they did not take out the policy.

The daily rates for these types of Interims are:

&pound200-&pound300 for the contractors who process the claims

&pound600 for the Project Managers

According to BrightPool, since the start of the PPI miss-selling scandal, banks and other financial institutions have been quickly setting up departments specifically to manage the influx of claims from consumers. Banks have been hiring blocks of 20 to 30 claims handlers at a time.

Banks are also coming under increasing pressure from the FSA to respond quickly and make sure that it is easy for consumers to apply for compensation.

Angela Hickmore, Managing Director, BrightPool, says: “We have seen a significant increase in demand for both claim handlers and project managers. Financial institutions have learnt from the difficulties faced at the time of the endowment scandals and this time, are reacting quickly to ensure they can manage the high volumes of claims expected for the rest of the year.”

“The speed and size necessary for a response of this magnitude has meant that many banks are already working to full capacity and struggling to keep up with demand.”

“There are now thousands of contractors and staff working on PPI claims.”

The number of claims are expected to rocket again as the FSA has issued another 12 million letters to potential claimants and is also investigating whether claims management companies acting on behalf of consumers have acted unlawfully. This could result in a high volume of claims being resubmitted to banks.


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