The current UK payment protection insurance bill has now reached a staggering amount of £12.94 billion according to recent figures. According to financial experts, the numbers are still rising as more claimants with larger interests and longer time owning the insurance come forward to make a claim.

The financial industry is currently swamped with mis sold PPI claims and large PPI bills. Currently, Barclays has £3.7 billion pledged for mis sold PPI, HSBC has pledged an additional £223 million, bringing their total bill to £1.3 billion. Lloyds, the biggest mis seller of PPI, has reached £5.3 billion, the largest amount of all compensating parties.

PPI is an insurance product designed to repay a loan, mortgage or credit card in case the customer gets sick or unemployed. Many customers were mis sold the insurance under mis-interpretation and unnecessary inclusion.

Customers such as “Roberta” who gained £65,000 for a mis sold PPI continue to alarm analysts and the financial industry. Thousands of customers with potentially a decade of compound interests can instantly bring the PPI compensation bill to £16 billion by 2013.

However, the slowing down of the PPI claims process is entirely blamed by authorities on the banks themselves. The Financial Ombudsman Service Chief Natalie Ceeney states that 7 out of 10 claims rejected by banks were all valid, meaning that the investigative arm of the financial industry are not paying full attention to the claims or are not giving proper processing to the cases themselves.