Study shows that customers have filed far more inquiries during the last three months.
The results of a study regarding the use of payment protection insurance have now been released and are showing that there has been a significant increase in inquiries from May through the end of July 2012.
The report claimed that this is a sign of an increasing market that looks to continue in that direction.
This study’s report of the increase in inquiries and business in the payment protection insurance sector only further supports other research that has been performed throughout the financial services industry.
There was an increase by 25 percent in payment protection insurance inquiries during July 2012.
From the start July to its end, the number of inquiries increased by 25 percent. However, from May to June, there had been an increase of 35 percent, which shows that there was significant growth during those months, as well. This represents an enormous increase in payment protection insurance business within that three month span.
The types of inquiries that occurred include telephone requests for information, questions asked over email, and emails asking for contact to be made. This is expected to rise even further now that announcements are being made by banks to boost the amount of money that is being set aside to pay claims on this type of policy.
For example, Lloyds TSB has now set aside approximately £4.27 billion in order to be able to cover claims for payment protection insurance. This is an increase over its former fund, which was £3.2 billion. That, alone, is considered by many in the sector to be a massive indicator of the growth that is currently occurring and that is expected to continue to occur within this part of the industry.
It is hoped that the popularity of the product will not increase the size of the scandal in this field. Fraud has been rampant and is keeping premiums higher than they need to be. So far, an additional £10 billion has been set aside just to pay for the costs of this scandal, which may become the largest financial scandal in history. It has already reached the point that it is among the top contenders.
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