Many people in the UK, who have received compensation for mis sold ppi are reporting that some of the banks, who were responsible for the mis-selling of the insurance have been hassling their customers into paying some of their compensation back.
Nearly twelve million people in the UK have made PPI Claims against the banks, but now some of those banks are claiming that in some cases the incorrect amount of compensation was handed out – and the banks are now asking for their money back, with some demanding up to £15,000. The banks have been claiming that compensation was handed out to customers incorrectly due to a clerical error.
PPI was designed to help people cover their mortgage or credit card payments, if they became ill or lost their job, however the insurance was massively mis-sold to millions of people who did not want or need it.
A Money Mail investigation found that Barclays bank told Christine and Christopher Smith, from Howden-le-Wear, County Durham, they would have to repay almost £15,000 in compensation.
It’s after they were handed a payout in 2012 when they were mis-sold PPI alongside their business loans.
This year Barclays contacted them to say they were due another £3,000.
But when the couple contacted the bank they received a letter to say they should never have been paid the original £14,739.
They were then whacked with a demand to pay back the full amount.
Mrs Smith said: “If we’d had the money we would have, of course, given it back, but so long after the event it was long gone.
“It caused us so much distress over a processing error made four years earlier.”
However, after the story was leaked to the press, Barclays announced that the couple did not need to pay the £15,00 back to the bank.