Banks paid out £1.9bn in compensation in 2011 for the mis-selling of payment protection insurance, a watchdog has said. Payouts accelerated towards the end of the year, with a monthly record total of £441m paid in December. PPI was supposed to repay people's loans if their income dropped because they fell ill or lost their jobs, but thousands were mis-sold the policies. The figures are supplied to the FSA by 16 unnamed firms.

These firms account for the vast majority of PPI cases. Delays Typically, successful claimants receive more than £2,000 in compensation. Most are....Read more here--: PPI payments