Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Ppi Compensation Spurs Economy Through Spending Boost

Recommended Posts

http://www.telegraph.co.uk/finance/economics/10250122/PPI-compensation-spurs-economy-through-spending-boost.html

The Office for National Statistics (ONS) confirmed that £10bn of PPI payments have stimulated spending, helping to drive growth.

Economists have long speculated that the claims were underpinning household spending, but the ONS has not reinforced the theory until now.

In an economic review into household expenditure on cars last month, the ONS said: “A more recent influence on purchases of cars may be the compensation payouts to consumers made as a result of payment protection insurance mis-selling, amounting to a cumulative total of just over £10bn since the start of 2011.

“The relatively large size of these payments offers households the potential to make large purchases, such as new cars, which they might otherwise have deferred. The timing of payments corresponds quite closely with the renewed pick-up in car purchases that began in 2011.”

Although when the PPI frenzy ends as it will what happens to our glorious GDP figure then?

Share this post


Link to post
Share on other sites

People who receive compensation whee people who are nor adverse to borrowing

So if the receive a lump sum it could well be augmented with a loan to buy a car, it seems logical

Share this post


Link to post
Share on other sites

Always knew PPI's primary function was stealth fiscal stimulus. Osborne demonstrated zero interest in prosecuting the original City-wide fraud. Or any other, for that matter.

Share this post


Link to post
Share on other sites

People who receive compensation whee people who are nor adverse to borrowing

So if the receive a lump sum it could well be augmented with a loan to buy a car, it seems logical

Amazing churn.

The bank steal a lump sum in a rigged market with a captured insurer.

The bank then has to give the lump sum back.

The borrower then leverages the lump sum at relatively high rates of interest on a car loan. The bank gets the money back.

Share this post


Link to post
Share on other sites

Amazing churn.

The bank steal a lump sum in a rigged market with a captured insurer.

The bank then has to give the lump sum back.

The borrower then leverages the lump sum at relatively high rates of interest on a car loan. The bank gets the money back.

and boosting the GDP at the same time no doubt.

Share this post


Link to post
Share on other sites

I wonder what all these pop up out of the blue companies that have been forever texting, ringing and annoying people urging them to claim their windfall compensation will do once everyone who could claim or did claim have claimed and the money runs out......some other blame claim middle man operation will no doubt spring up to charge a fee for what could be been done for free. ;)

Share this post


Link to post
Share on other sites

I wonder what all these pop up out of the blue companies that have been forever texting, ringing and annoying people urging them to claim their windfall compensation will do once everyone who could claim or did claim have claimed and the money runs out......some other blame claim middle man operation will no doubt spring up to charge a fee for what could be been done for free. ;)

Yep. "I bought an overpriced house and nobody told me it was overpriced so I want compensation" type operation.

Share this post


Link to post
Share on other sites

so, having PPI at all must have DEPRESSED the economy at the time..oh noes...it was a sale then, and its a sale now.

Share this post


Link to post
Share on other sites

Never mind making things people want to buy or having enough houses to live in, a couple more compensation schemes for missold financial products and the mighty British economy will be roaring away.

Share this post


Link to post
Share on other sites

Yep. "I bought an overpriced house and nobody told me it was overpriced so I want compensation" type operation.

Since LIBOR was being gamed, technically every mortgage sold in the UK is fraudulent. Surely it's only a matter of time before Osborne starts handing out the sweeties.

Share this post


Link to post
Share on other sites

Since LIBOR was being gamed, technically every mortgage sold in the UK is fraudulent. Surely it's only a matter of time before Osborne starts handing out the sweeties.

That does appear to be the logical conclusion that everyone with a mortgage has "over paid".

Just think people might even get a large enough refund to buy a house, think of the boost to GDP and house prices for the UK economy. This might just win an election....

Share this post


Link to post
Share on other sites

lets not also forget that house prices are a function of yeild, based upon rents...renters too then have been screwed by the market manipulations, as well as huge housing benefit payments also based on those average rents, and therefore, yields.

Cheap lending has screwed everybody.

Share this post


Link to post
Share on other sites

http://www.telegraph.co.uk/finance/economics/10250122/PPI-compensation-spurs-economy-through-spending-boost.html

Although when the PPI frenzy ends as it will what happens to our glorious GDP figure then?

Perhaps the OFT will revisit the bank charges case - refunds all around. GDP up kept again - people 'happy' and new 'sales' for the banks via car, house deposits....

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   211 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.