| Banks, Barclays PPI Claim, Lloyds PPI Claim

BBC Watchdog Bites The Banks Over PPI Complaints

A highly regarded consumer champion programme of BBC, Watchdog, which aired on 31st of October last year, slammed five banks who had set out a total provision of more than £10 billion in order to compensate the losses of customers who were mis-sold PPI.

Lloyds, TSB and Barclays had to bear the brunt of this smashing criticism by the Watchdog. One of the main issues that were highlighted was where the banks informed the customers having legitimate claims that they did not have any PPI policy sold to them.

These complaints were then referred to the Financial Ombudsman Service (FOS) whose chief executive made a statement saying that almost three-quarters of the complaints were found to have a PPI policy sold to the customers by the banks in some way or another.

Back in the month of May in 2011, the High Court rejected the banks’ attempt to argue that they did not have to pay any compensation to the customers where they happened to breach certain rules and regulations that applied to them. If the banks would have been successful in their arguments, several customers would have never been able to make their claims and receive compensation.

These banks have now set aside over £12 billion, but we know only too well looking at their performance in handling the tens of thousands of PPI claims that there can be an apparent unwillingness for paying this amount every time there is a genuine complaint.

The worst offenders in the PPI mis-selling scandals are Lloyds TSB, who recently increased their compensation amount by a staggering £1 billion, bringing their final total to more than £5 billion, and Barclays, whose total currently stands at £2 billion having recently increased their compensation amount by £700 million.

Watchdog also mentioned other key offenders of the scam, including Santander, who have been expecting to pay out in an excess of £550 million, while The Royal Bank of Scotland and HSBC have been reported to set aside an amount of £1.2 billion and £1 billion respectively.

All this and much more was revealed by Watchdog on its show, letting people know about the manipulating sides of the big names which constitute some of the most respectable high-street banks in the country.

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