Banks demand hundreds of extra staff to deliver PPI compensation to consumers
Demand from financial services providers for extra contractors and interim managers to deliver Payment Protection Insurance (PPI) compensation to consumers is rocketing, says Interim Partners, the leading provider of interim managers.
Andrew McIntee, Partner at Interim Partners, says: “In just one request, we were asked to help provide over one hundred PPI claims handling contractors and the senior level interim managers who will oversee their progress.”
“The number of consumers the FSA has said should be compensated is so high that it will take an army of contractors and senior managers to work through all the claims.”
“Financial services institutions do not have the permanent staff in place to handle this volume of claims so they have to use temporary staff instead.”
Interim Partners says that the daily rates are:
- £200-£300 for the contractors who process the claims
- £800 for the interim managers with operations backgrounds who hire and manage the teams of contractors
- Up to £1,500 for interim managers with significant experience in previous consumer redress programmes and knowledge of PPI products
Interim Partners points out that claims management companies may complicate the banks’ compensation programmes, further increasing demand for contractors.
Andrew McIntee adds: “Claims management companies have been approaching vast numbers of consumers who might be eligible for compensation through email, text message and even street canvassing campaigns. Their aggressive approach is creating an explosion in claims.”
“There is also a risk that claims handled by claims management companies could contain errors that mean they require more time from claims handlers to sort out.”
Interim Partners places interim managers at or just below board level, with day rates from £500 upwards. Its sister company Brightpool, which was founded in 2010, recruits for the level below that, with day rates up to £500.