Can my PPI compensation claim be re-opened?
There has been a huge amount of information and stories in the press recently about people being short-changed in the compensation awarded by banks for mis-sold payment protection insurance (PPI).
The news is that many people could be entitled to more compensation but, what is it all about? And how do you know if you are one of the customers who could expect more cash?
What is the problem?
It was discovered a short time ago that some banks and lenders had not compensated their customers the full amount that they were entitled.
There is a loophole that does indicate that a bank or lender if they deem that the policy was necessary, only need to compensate the difference between the cost of their policy and the nest cheapest.
Not only this, not all customers had received the full amount back as the bank had not included any fees or costs incurred on the account as a result of PPI being added to it, pushing the account over the credit limit and so on.
Does it affect more than one bank or one banking group in particular?
No, it seems that once again, there is no one culprit that is worse than the other. It affects Lloyds Banking Group more, only because they have more banking brands under their umbrella.
Can they continue to short-change people?
In a word, no.
PPI compensation is about two things:
Mis-selling – the policy was mis-sold to thousands, upon thousands of customers, and the compensation bill across the board is now reaching phenomenal proportions. Billions of pounds have been paid back already to customers with predictions that it could be a lot more. If the policy was mis-sold, every penny should be paid back.
Putting back in the financial position the customer would have been in had they not been mis-sold the policy – compensating the customer is about putting them back to the financial position they would have been in had they not been mis-sold the policy in the first place. There may be a ‘loophole’ in the law but, the regulatory authorities are quite clear: if the policy was mis-sold there should be no quibbling or withholding of compensation.
Can I claim more?
It is thought that this loophole has affected around 2,500 customers, from a number of banks and lenders, including those with claim on credit card PPI.
Your bank or lender should contact you but, if you think you could be entitled to more compensation, you can always contact us here at Payment Protection Scotland – we’ll be happy to help.