You are here: Home - Saving & Banking - News -

Banks set aside £1.5bn+ for PPI claims

0
Written by:
06/11/2012
The UK's biggest high street banks have set aside in excess of £1.5bn in additional provisions to payout on PPI claims
Banks set aside £1.5bn+ for PPI claims

according to PPI provider, MoneySave Settlement Solutions.

Consumers are being urged to check whether they may have been mis-sold payment protection insurance products over the last decade.

Kevin Still, director of MoneySave Settlement Solutions, said: “It is positive news for consumers that banks are continuing to set aside additional funds to pay out on mis-sold PPI.

“Historic sellers of PPI are being forced to offer compensation to more consumers, with some doing so when presented the appropriate evidence and others after the Financial Ombudsman Service (FOS) uphold a consumer complaint when the case is adjudicated.

“Barclays has set aside another £700m and Lloyds, the UK’s largest retail bank, an additional £1bn suggesting that both expect to see a continued stream of valid claims come through in the immediate future.”

Providing proof of the PPI sale is essential to a consumer’s chances of obtaining compensation.

The process can be quite long-drawn-out, but evidence of PPI from a copy of the original credit agreement, an annual statement or a recent letter from the lender can greatly accelerate the reclaim process.

MoneySave says that with banks often slow to react to personal claims, despite assurances that those who were mis-sold payment protection insurance would receive compensation promptly, over 90% of the complaints that get passed to FOS for adjudication get upheld in favour of the consumer.

In total banks have put aside some £11bn to compensate customers, £6.5bn more than originally projected, for what is now widely seen as one of the biggest financial mis-selling scandals ever.

Still added: “Those who have been mis-sold PPI should not have to jump through hoops to have a legitimate claim compensated. The banks and credit card companies have already paid out a significant amount of compensation but there is clearly still some way to go.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2222659-for-sale
Property sales down 38%

The number of homes on the market has declined by 38% since the UK economy went into recession in December...

Close