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Banks pressed to take Barclays' approach to mis-sold PPI

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.

Claims Financial

Testimonial
"I just had to put pen to paper and write to say I'm more than delighted with my settlement that you won me back from my PPI I had with Lloyds TSB. The Claim Forms were simple to fill in. It was a breeze"
Mr R Evans 11 Nov 2010
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