Banks Accused of Underpaying PPI Compensation by £1 Billion

Barclays PPI Claims Fall While Mortgage Claims Surge
May 31, 2014
7 Tips to Help You Recover from Debt
June 6, 2014
Show all

Banks Accused of Underpaying PPI Compensation by £1 Billion

The High Street banks are still under fire for the PPI scandal. They claim that they have taken the steps needed to correct the problem, but many experts feel that their efforts have been less than satisfactory. They have been accused of delaying the processing of claims and denying legitimate claims. The banks have been recently accused to underpaying their customers as well.

Banks May Have Underpaid Customers by £1 Billion

A recent report in BBC News shows that some of the largest High Street banks have underpaid PPI claims by £1 billion. The report states that the underpayments occurred at a variety of banks and at different types of customer accounts. However, most of the customers that were underpaid had purchased PPI for credit cards with Barclays, Lloyds,Capital One and MBNA.

The banks have argued that they have been working diligently to make sure that all customers were paid the money they were owed. However, they either overlooked a flaw with their credit card repayment system or found a sneaky way to siphon extra funds from customers. Customers with credit cards were charged processing fees and penalties with the PPI refund.

More than £22 Billion Repaid

The banks have currently repaid £22 billion that was owed to their customers. They have also set aside billions of pounds for claims that are likely to be filed in the future. The Financial Services Authority has informed customers that they are owed the principal of all payments they have made with interest. For many customers, the interest is several times the amount of premiums that they have paid over the years.

The customers that have received refunds for PPI are relieved to have payments. However, they want to make sure that they receive the full amount that they are owed. Some customers may have been underpaid by 5% or more.

Some of the banks revealed their compensation procedures and stated that they are determined to make sure every customer receives the money that they are owed. Capital One did not issue a statement. MBNA said that it’s practice was to charge PPI premiums at the end of the month after all other fees were imposed, so the bank doesn’t typically refund fees.

Richard Lloyd, executive director of Which?, said that banks have an obligation to make sure their customers are repaid the money they are owed. Which? and other consumer advocacy groups will work diligently to ensure the banks make right by them.

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.