PPI or Payment Protection Insurance, for more than decade banks routinely mis-sold millions of customers who applied for loans on credit cards. These banks still have to settle billions of customers who are entitled to be refunded. There are many legitimate claims from the customers.
The big five banks not always popular and when it comes to judging PPI complains, not always right. It took high core ruling last year to force them to compensate millions of customers to whom they mis-sold the policy. The amount they set aside to cover the claims are truly staggering.
Santander says that their compensation could hit 5050 million pounds. But that is nothing compared to its rivals.
2. HSBC Bank
They are expected to compensate the claims worth of 1.1 billion pounds, which is much higher than Santander.
3. RBS Group
According to them, it will take 1.3 billion pounds to cover the claim compensations.
4. Barclays Bank
Barclays Bank claims that they will pay off 2 billion pounds to compensate the claims of customers about mis-sold payment protection insurance or PPI.
5. Lloyds TSB
Lloyds TSB, however, puts aside a staggering amount of 4.3 billion pounds.
Therefore, the total bill for the big five is just over 9 billion pounds. Although, all of them are committed to repaying all these payments, however, in reality, some of the banks are strangely reluctant to do this. Besides all their promises to compensate everyone who is mis-sold PPI, getting your money back can be remarkably difficult.
Financial Ombudsman Service (FOS) Role
FOS, the Financial Ombudsman Service, is an independent body which has the power to overturn the bank decisions and if necessary award compensation. It is set up to settle all kind of disputes related to PPI or payment protection insurance, but ever since the banks were supposed to be compensating PPI customers, it’s been creaking under the workload.
FOS can legally deal with such financial issues. The ppi insurance lawyers can also help the customers get the PPI compensation done legally if the banks do not solve the problem.
FOS can compensate only three-quarter of the complaints of PPI compensation till now. Of all the five big banks, the Lloyds and Barclay’s refused to compensate the PPI claims. Almost, 93% and 98% respectively, of the complains are left on their part to pay which they refused. They do not look into any of the paper works and plainly refuse the customers about compensation.
There are millions of people out there who have been denied justice for a very long time. And the FOS is doing work to clean this up from the financial history. They are receiving so many complain of banks that are rejecting customers about PPI. Every month there are almost half a million complaints, some phone calls to FOS and a lot of new complain to investigate about the mis-selling PPI.
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