Irish Central Bank Investigates PPI Compensation Scheme

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Irish Central Bank Investigates PPI Compensation Scheme

The Central Bank of Ireland is investigating the impact of a number of problems that arose from the PPI mis-selling fiasco. They believe that the compensatory rates many banks created were largely responsible for the problem. The central bank wants to confirm its suspicions so that it can take appropriate action.

Banks Facing More Penalties for PPI Mis-Selling

The banks are facing significant penalties for the PPI mis-selling campaign. They have already been forced to repay  €64 million and are expected to pay even more in the near future.

The Central Bank of Ireland stated that many banks are paying back PPI to varying degrees. They want to know why banks are paying it back with different interest rates.

Questions About Equability Are Raised

The PPI refund process states that all banks must pay interest to customers that were mis-sold PPI. The central bank set a minimum interest rate that all banks need to pay on PPI claims, but they were otherwise given discretion to set rates as they saw fit.

Many people felt that this wasn’t a fair system. They said that it wasn’t fair that two different customers could be mis-sold very similar payment protection insurance policies from their banks and be repaid with different interest rates. The central bank wants to investigate and force banks to pay more uniform interest rates to their customers.

UK Approach Considered More Appropriate

A number of experts feel that the central bank should adopt the same system used in the United Kingdom. The Financial Ombudsman Service said that all banks must repay PPI claims with an 8% interest rate. The FOS made it very clear what terms the banks would need to follow as well.

This policy should be enacted as soon as possible. The central bank expects many more banks will need to pay compensation for tens of thousands of additional PPI claims in the very near future. They want to make sure that the system is fairly structured before the new claims are processed.

COVID-19 ANNOUNCEMENT

MARCH 23RD 2020

At this time we are continuing business as usual however our team will now largely be working from home. This limits our phone contact availability. Customer support remains available Monday to Friday but please email in to info@oraclelegal.com with your query. We aim to get back to you within 48 hours. On receipt of PPI refunds our fees remain payable and can be paid via our website www.oraclelegal.co.uk/payments/ or via BACS. We are also working on some other areas of potential claim for you in connection with your PPI and will be in touch shortly where applicable to present this to you.

IMPORTANT:The last day we can accept a new claim is Friday 23rd August – midday – to ensure the paperwork is properly processed and lodged with your lender before the cut-off time.