Banks Stalling Paying Out Ppi Compensation Say Experts
Wednesday, 08 February 2012
Banks may be getting better at hitting stringent deadlines for settling claims from people who were mis-sold Payment Protection Insurance (PPI) – but they are dragging their heels when it comes to paying out.
The Financial Ombudsman Service set banks tough deadlines for dealing with complaints, but there are no rules about how quickly they should pay PPI refunds once they have made a decision to settle.
Most banks tell customers that the average delay is around 28 days, but experts claim that thousands of customers seeking to claim PPI back are actually being forced to wait several months before receiving their money.
Michael Pilgrim, of PPI specialist Randall and Vickers, said: “I know of pensioners who have been forced to wait three months to claim back PPI and more for a series of cheques which their bank claims were posted but have never materialised.
“There are others who were pleased to have settled the case five months ago, but are still waiting to see any cash from their banks.
“These are all people who have already been taken advantage of by the major banks, yet here they are being mistreated again and the watchdogs who are supposed to be there to protect consumers are doing nothing to help.”
Mr Pilgrim added that the deadlines set for dealing with complaints had been effective in making banks process complaints more quickly.
Now the same approach is needed to be taken on the speed of payments in order to protect consumers from the banks’ delaying tactics.
“If banks can’t be trusted even to deliver on their promises, then maybe the FOS needs to set them equally tough deadlines for making payments, and fine them when they fail.”
The problem, according to Randall and Vickers, applies to most major banks. Only Egg was singled out for praise for sending out cheques, on average, within seven days of sending a full offer letter.
Notes to editors
- Randall & Vickers is a financial claims management company helpingUKconsumers reclaim money from banks and other financial institutions
- All fees are clear and transparent and consumers pay nothing unless and until their money and/or compensation is recovered
- They use their years of experience to navigate the sometimes-complicated claims process to ensure their customers are more likely to win than had they handled their claims themselves
- Established in 2008, the company now employs 20 people based largely in its office inManchestercity centre or through a small team of homeworkers