| Claiming PPI Compensation, PPI, PPI Refund, PPI Scandal

It has been reported that customers who were mis-sold Payment Protection Insurance (PPI) might have been under compensated than what they were actually owed.

Experts envisaged that a shortfall of £1bn in refund to PPI consumers has arisen because of banks failing to pay off the charges that have been triggered by the service’s extra premiums.

A BBC report states that most credit card holders with Barclays, Lloyds Banking Group, Capital One and MBNA are potentially owed thousands of pounds as extra compensation. It also claims that the total amount refunded has to be higher, especially in instances where extra charge was attached to a cardholder’s bill because of the premiums of mis-sold PPI policies.

Banks have previously paid off the expense of PPI policy along with interest, in line with the watchdog’s guidance, but certain banks have failed to add the charges that have been triggered by the contentious insurance.

As per experts, it’s quite difficult to guesstimate exactly how much extra compensation can be owed and the liability to make a claim for the difference depends on the customer.

According to Cliff D’Arcy, an ex-banker and PPI specialist, he is confident that the estimated figure would be somewhere around £1bn of additional compensation. This is merely because most of the banks were charging high penalty fees, interest rate on borrowing and some of the claims go back to decades. So, this simply compounds and multiplies to a very huge number.

As per the Financial Ombudsman Service (FOS)-ruling on disputed compensation claims- it feels that the extra charges must have been refunded to the consumers.

Caroline Wayman, the head of the body said that, “If fees are the end result of a mis-sold PPI, then it must be given back and of it is not being included, then that would be mistake. Also, any kind of widespread failure to carry out appropriate calculations will without any doubt be disappointing.”

She further added that, “If you are not satisfied with the answers, then it can be brought to the Ombudsman and we can see what can be done.”

The banks involved in the mis-selling claim to have put in full efforts to make sure the right amount is being compensated to consumers, yet some of them have denied to comment on how the compensation amount was actually calculated.

The spokesperson of Lloyds Banking Group said that, when the consumer informs them that they might have incurred other expenses due to PPI policy, only then they investigate and make a suitable refund.

Barclays acknowledged their past failures and vowed to introduce a fresh “improved” way, which would enable them to move towards a more cumulative evaluation of fees.

Top credit card lender MBNA acknowledged their evaluation of monthly PPI payments, excluding the majority of charges and fees, yet claimed that their methodology has been re-examined and is correct.

On the other hand, Capital One refused to comment on how they actually calculated the compensation, saying that they aim to pay redress, which puts the consumer back in a position they would’ve been if they weren’t mis-sold PPI.

Check now for FREE
Share this post: