Which? urges other banks to offer no-question reclaims
by Luke Whitmore, 20th June 2011
The high street banks are being urged by consumer groups to
follow Barclays lead in paying out to all customers who were sold
PPI and have registered a complaint.
PPI, or Payment Protection Insurance, has been widely mis-sold
by the banks for years, and a judicial review on the legality of
new FSA regulations led to financial institutions being legally
required to ensure that their customers receive compensation if
they were sold PPI inappropriately.
However, due to having put their complaints procedures on hold
during the review, the high street banks have accumulated a vast
backlog of cases to deal with, which some analysts have suggested
could take months or even years to fully assess. Due to this,
Barclays recently announced that they would be granting a
compensation payout, no questions asked, to anyone who had lodged a
complaint with them before April 20th this year.
Peter Vicary-Smith, the chief executive of consumer group
Which?, has complimented Barclays on their move - and encouraged
other banks to follow their lead. "It's fantastic to see Barclays
stepping up in this way," stated Vicary-Smith, "acknowledging its
mistakes and refunding customers what they are owed, no questions
asked. Hopefully this will have a domino effect and other banks
will follow suit - the sooner the banking industry can consign the
PPI mis-selling scandal to the history books, the better."
He stated that the high street banks "have a lot to do to
rebuild their reputation after over a decade of mis-selling PPI and
then mis-handling complaints about it".
However, RBS, HSCB, Santander and the Lloyds group have
indicated that they will not be ensuring payouts for everyone, and
instead will be proceeding with business as usual, processing PPI
complaints one by one - meaning that some unfortunate customers
could be waiting a long time to find out if they're eligible to
claim.
If you feel you were mis-sold PPI, you could claim back your PPI today.
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