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Banks set aside £1.5bn+ for PPI claims

Tahmina Mannan
Written By:
Tahmina Mannan

The UK’s biggest high street banks have set aside in excess of £1.5bn in additional provisions to payout on 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.”