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Barclays PPI Claims Fall While Mortgage Claims Surge

Barclays finally seems to have resolved many of its PPI problems, but other issues persist. A recent report from the Financial Conduct Authority shows that mortgage claims have soared with the High Street bank over the past year. Many financial and compliance experts feel that this reflects ongoing problems with Barclays, but the bank disagrees with those findings.

Financial Claims Continue to Rise

The FCA said that PPI claims at Barclays dropped significantly during the first quarter of the year. However, that is the only good news for the bank. Other claims have remained  persistently high.

After factoring for the lower PPI claims, the FCA report shows that total financial claims have increased 10% during that time period. Mortgage claims have increased the most. Barclays consumers filed 43% more mortgage claims during the first three months of the year than the previous quarter.

Barclays Unfazed by Report

The new report suggests that there are still a number of long-term problems with the corporate culture at Barclays. Barclays customers have filed more complaints than those of any of the other banks.

The leaders of the bank should be alarmed by the FCA report. However, they said that it doesn’t reflect ongoing problems within their company. They dismissed the report by blaming the increase on higher market share over the last quarter.

Matt Hammerstein, Barclays head of client and customer experience, said that the bank has made substantial progress resolving many of the issues that it faces. He acknowledged that claims are elevated, which reflects some of the problems that the bank endured over previous years. However, he also stated that total claims have fallen in recent months. He believes the trend will continue.

Other experts have taken a more cynical view. They said that total PPI claims have fallen substantially because most customers have already filed for compensation. They said that Barclays shouldn’t be able to point to total claims to suggest that their situation is being resolved.

The new FCA data illustrates the depths of the problems affecting the banking system. The Financial Ombudsman Service also said that while PPI claims are dropping, they are still extremely high. These customers claim that they either never intended to purchase PPI or were duped about what services it covers.

Tony Boorman, the head of the FOS, said that over 1,000 people are still filing for PPI compensation every day. Boorman and his colleagues feel that it may take years for the PPI crisis to be fully resolved.

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.