PPI compensation payouts reach £1.9bn in 2011

Banks paid out £1.9bn in compensation in 2011 for the mis-selling of payment protection insurance, the Financial Services Authority (FSA) 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.

Simon Gompertz reports.