Some Banks Yet to Pay Up

Many victims of the payment protection insurance (PPI) scandal are still awaiting compensation as banks break promises by delaying payouts.

Over 500,000 customers have claimed compensation after lenders and financial institutions mis-sold millions of policies to people who couldn’t use them or didn’t even know about them.

A report from Monday Mail suggested a large number of customers who received confirmation that their claims was successful are still waiting for money. Although many high street banks have admitted delaying the time of paying out compensation claims, it was mis-selling giant Lloyds TSB who received the largest amount of complaints for failing to comply with the Financial Service Authority’s rule to process claims within 28 days.

Lloyds banking group are accused of selling the most mis-sold policies during the scandal and as a consequence have set aside £3.2 billion to cover the cost of the compensation they are required to pay out.

Adam Phillips, Chairman of the Financial Services Consumer panel fears any progress made in restoring consumer faith in banks has been dashed by these compensation delays as the news comes as banks desperately try to rebuild their relationships with customers.

The PPI scandal has had a particularly detrimental effect on the relationship between UK customers and their banks and as new research by Triodos suggests, the British public have lost faith in their banks due to the situation.

Only 3% of people currently trust their bank to be totally honest about how they deal with their savings.

We believe High Street banks are once again failing to provide an adequate level of customer service with delays to PPI payouts and that they need to rebuild the trust they have with their customers. The banks should ensure they are paying within the 28 day limit set by the FSA not just to keep with regulations, but because they were at fault in the first place by being complicit in mis-selling policies.

If you are looking for help on making a PPI claim and believe you are entitled to compensation, then we at Precision Claims can help. Contact our dedicated team today on 0844 704 1945.