08 December 2014
Do you have a PPI case that was either rejected or resolved in 2012 or 2013? If so, you may find your case re-opened by your bank or credit card provider after news that 2.5 million cases are being re-investigated…
Payment protection insurance (PPI) holds the rather dubious accolade of being the most mis-sold financial product in British banking history. The compensating of customers has a turbulent history, but there is a new twist in the saga yet again, with the Financial Conduct Authority finding that some compensation complaints were either rejected unfairly or compensation was underpaid.
In late summer 2014, various investigations opened up a whole new can of worms when it came to the compensation being paid out by banks and, in particular, credit card providers in relation to mis-sold PPI.
An expert commissioned by the BBC, calculated that a massive £1 billion could still be owing to customers, already stung by the mis-sale of the financial product in the first place.
Even though PPI was designed to cover repayments on loans in the event you couldn't make repayments due to ill-health or other reasons, many people were effectively exempt under the terms and conditions. It was also an expensive policy for the meagre cover it provided but, this did not stop banks and lenders mis-selling millions of policies.
Since the compensation ball started rolling in 2007,13 million complaints have thus far been submitted to banks, lenders and other financial institutions. Overall, the latest figures available show that £16billion has been repaid collectively in PPI compensation by the banks.
But, it seems there may have been issues early on in the process that are now coming to light.
The Financial Conduct Authority (FCA) think they are and, as such, are expected to scale down their operations involved in PPI compensation and mis-selling in 2015.
But, there seems to be one nagging doubt remaining - the issue of underpayment and rejection of legitimate complaints in the past.
The FCA believe that it is important these cases are looked at again and are telling banks, in particular those institutions who have compensated on credit card accounts, to look again at an estimated 2.5 million cases.
Trustin the banking industry here in the UK has been at an all-time low since the PPI mis-selling debacle came to light and the possibility that some complaints have been rejected unfairly, or under-compensated will not help the issue of trust improve.
And this is why the FCA are telling banks and credit card providers to look again at claims settled or rejected in 2012-2013.
Your bank or lender may write to you or, if you think you may have a case for further compensation or would like you rejected claim re-examined, Scottish PPI Claims can help…