Most PPI mis-sellers won't institute no-quibble payouts
by Luke Whitmore, 15th June 2011
Despite Barclays decision to settle PPI complaints without
argument, the other banks do not seem set to follow suit, to the
anger of many consumers.
Barclays this week announced that any complaints over mis-sold
PPI (Payment Protection Insurance) made before the 20th
of April this year would result in compensation payouts for the
customers with no questions asked.
A statement from the bank explained that this was being done as
a goodwill gesture to ensure that the backlog was cleared quickly
and that complainants would not have to wait for their complaint to
be processed. Due to a lengthy judicial review over PPI
mis-selling, during which the banks placed their complaint
procedures on hold, a vast number of disgruntled customers lodged
their dissatisfaction, with the result that some analysts have
predicted it would take the banks months or even years to sift
through them all.
But in spite of this, other banks involved in the scandal -
which involved the selling of Payment Protection Insurance to many
customers who were not eligible to claim on it or did not need it -
have stated that they will not be taking Barclays' approach to the
problem, and will instead be considering compensation claims on a
case-by-case basis.
RBS, HSCB, Santander and the Lloyds group have all announced
that they will not be paying out the billions owed to customers
without first scrutinising the content of each complaint, leaving
many borrowers to play the waiting game.
The FSA recently extended the deadline for banks to respond to
PPI complaints in light of the breadth of the mis-selling.
Ordinarily, they are required by law to respond within eight weeks,
but in this situation they will be required to make their responses
by August 31st instead. Despite this extension, the
banks are expected to struggle, with many taking on new staff to
cope with the deluge of mis-sold PPI complaints.
If you have been mis-sold PPI, we can help you claim back PPI today.
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