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.
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.
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.
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