A member of parliament has increased worry that the total liability for payment protection insurance claims and its mis-selling could very well reach Ј4 billion.

Jonathan Evans quotes that this total expenses of mis sold ppi may be within the billions array, with over the years the significant numbers turning out to be colossal.

The MP said: “I’ve seen signs that in due course the entire liability with regards to PPI is apt to be not in the hundreds of millions however the billions of pounds. I observed a figure of possibly even Ј4bn mentioned being an end game figure.”

MPs and members of the House of Lords informed that despite the fact that settlement is very important, the current structure from the Financial Services Compensation Scheme (FSCS) indicates professional insurance brokers are compensating the failures of a large number of companies; from banks and mortgage brokers to car dealers, doctors, dentists and vets.

The Financial Services Authority is now being asked to start talking to on a new financing model for the FSCS in time to have new rules in place with regards to 2012-13 financial year.

The funding model will independent specialist insurance brokers kind other sellers of general insurance to eliminate the cross-subsidisation of just one class by others.

For help controlling your mis sold payment protection claim, meet with Belmont Thornton today

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