5 Facts About PPI You May Not Know
Mind-boggling, eye-watering, no matter how you choose to describe it, the mis-selling of payment protection insurance (PPI) has rocked the British banking industry to its core.
From the PPI bonfire, rose the new look financial regulator the Financial Conduct Authority, as well as a savvier customer, no longer willing to take the bank at their word.
And there are many other facts about PPI you may find interesting…
Lloyds Banking Group employed or seconded 6,000 employees to work on PPI compensation claims
As the biggest group in the UK, it makes sense that Lloyds Banking Group will be dealing with the highest number of PPI claims, have the biggest compensation fund as well as having the biggest admin bill (rumoured to be around £700m) than the other banks.
Banks and lenders have a timeframe within which time they must deal with PPI compensation claims. By not following these deadlines, the banks can face a fine or other sanctions. This is possibly the reason why Lloyds have seconded so many staff to deal specifically with PPI compensation claims.
Santander say they have paid their customers back
Smaller banks and lenders have been quick to tell people when they think they have compensated all their customers. Santander says it only held 6% of the PPI market and believe they have paid all their customers back.
However, in 2015 and 2016, there was still a trickle of PPI compensation claims being made by customers and this trickled has continued until this day – and probably will until the PPI deadline August 2019.
Nationwide say 42% of PPI claims made against it were disingenuous
Nationwide said that back in 2014, 42% of claims made against it were by ‘customers’ who did not have PPI in the first place. They blamed claim management companies for ‘clogging up the system’, making disingenuous claims.
However, what Nationwide is not telling you is that over 2,000 cases it refused to pay out on, the Financial Ombudsman upheld in favour of the customer more often than not.
ALL major banks wrote to customers who they knew had PPI
Banks were told to write to customers about PPI and invite them to make a claim for compensation as they believed it may have been mis-sold to them.
Despite these letters and various marketing campaigns, mainly by claim management companies, financial experts believe that only 40% of people with a genuine claim for PPI compensation have gone ahead and done so.
Claiming compensation for mis-sold PPI is something you can start today
All you need to do is pick up the phone and call Payment Protection Scotland.