Banks pass first deadline in PPI scandal

Yesterday marked the FSA's first dealine for banks to address customer complaints for mis-sold Payment Protection Insurance products.
Sept. 1, 2011 - PRLog -- Millions of bank customers in the UK are set to share in the country's biggest compensation payout in years, after the financial services industry finally gave up the legal fight over the alleged mis-selling of loan insurance products. In the final twist of what was beginning to feel like a never-ending saga, the High Court dismissed an appeal against regulatory changes that would force retail banks to refund past policies worth billions.

The next step will be for banks to begin the painstaking, not to mention time-consuming, effort of handling an enormous backlog of complaints, establishing where remedial action is required. In the weeks immediately after the conclusive High Court ruling, banks quickly began unveiling their plans. Barclays announced that it would pay out compensation to all customers who believe they were mis-sold loan insurance and whose complaints are currently on hold.

Meanwhile, Lloyds Banking Group, which made the largest provision of 3.2 billion for PPI compensation, has said that it will continue to review every complaint on an individual basis. Similarly, the Royal Bank of Scotland, which set £850 million aside, and HSBC, which has accounted for 270 million in expected repayments, have both vowed to process complaints one by one.

A full report on the PPI scandal is available here -
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Tags:Ppi, Payment Protection Insurance, Insurance, Loan Insurance, Compensation
Industry:Banking, Finance, Consumer
Location:United Kingdom
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