Four of the five major UK banks have stated they will not be following Barclays lead of ‘no quibble’ pay outs for those complaining about being mis-sold PPI.
After the courts ruled against the banks in April, stating that they are to blame for the mis selling of PPI over the past decade Barclays adopted a ‘no quibble’ attitude to claims made before the 20th April. It was hoped that the other banks would follow suit but Lloyds TSB, RBS / Natwest, HSBC and Santander will be paying back refunds on a case by case basis.
This is disappointing as it means longer delays for customers who have lost money from being mis sold PPI. When the case went to court earlier this year all claims were put on hold and new claims were frozen, this has caused a huge backlog in claims.
In normal circumstances banks have to issue a decision within 8 weeks, however many customers have already been waiting months.
The Financial Standards Association (FSA) has stated that any claims that were put on hold during the legal proceedings must have received a decision by the 31st August.
Any complaints issued between September 1st and December 31st this year will now receive a response within 12 weeks and any complaints that were put in after the April 20th and before August the 31st will have to wait 16 weeks to get a response.
These long delays are frustrating for consumers and another good reason why using a company to keep on at the banks for a decision and know the correct procedures could be essential in winning back PPI payments.