Experts are predicting the compensation received following a successful payment protection insurance claim could have a significant benefit to the floundering UK economy as many plan to spend their redress on home improvements and family holidays.
Responding to an anonymous questionnaire, 25 per cent of successful PPI claimants plan to spend their pay out on a renovation project such as a new kitchen or bathroom while a further 20 per cent are looking to take the family on holiday.
55 per cent however will use their redress to pay off additional loans and/or credit cards. While this may appear unlikely to bolster the economy, there is hope that by paying off these existing debts will leave consumers with an increase of income to spend on the high street.
The National Institute of Economics and Social Research has predicted if the £10bn earmarked for payment protection insurance compensation claims is pumped back into the economy the Gross Domestic Product (GDP) could increase by 0.1%.
Millions of consumers were wrongly sold payment protection insurance when taking out a loan or credit card.
To find out if you could be entitled to compensation for a mis sold PPI policy, complete our online enquiry form and one of our PPI experts will be in touch to discuss your claim.