Ppi Experts Welcome Banks Decision To Settle Claims
Tuesday, 10 May 2011
Experts today welcomed the news that the British Bankers' Association (BBA) is not to appeal a Judicial Review into the mis-selling of Payment Protection Insurance (PPI).
The decision could now pave the way for thousands of consumers to claim compensation, which could run into thousands of pounds each.
PPI experts said the move would lead to banks responding to consumers much more clearly and efficiently.
Michael Pilgrim, of claims management specialist, Randall and Vickers, said: "This is just what consumers needed to hear. At long last, this should put an end to banks' sluggish response to claims, or putting claims on hold indefinitely.
"At the same time, a quick response isn't always the best response for consumers and people making claims need to check any offers of settlement they receive very carefully."
Today's statement by the BBA came after both Lloyds Banking Group and Barclays announced that they were to settle claims rather than pursue a joint appeal against the Judicial Review.
Some commentators have suggested the mis-selling scandal may now cost the banking sector as much as £9bn, after Lloyds and Barclays estimated that settling claims would cost them a total of £4.2bn.
Mr Pilgrim added: "The first thing people should do is check their statements. Thousands of people who have taken out loans or credit cards have also taken out PPI policies without even realising it, and could be entitled to compensation.
"The next step is to be vigilant about what settlement offers they receive. While today's announcement suggests banks want to deal with this issue quickly and move on, that doesn't necessarily mean that all settlement offers will be fair.
"If you have been mis-sold a policy, make sure the compensation you accept covers all your premiums, and takes account of any interest you may have paid unnecessarily during that time.
"Finally, if you think you are eligible for compensation, make sure you don't step out of one rip-off straight into another. Some claims management firms charge up front fees, and cover their fees in mystery and uncertainty.
"If you do choose to use professional help to pursue a claim, make sure you know and are comfortable with how much that will cost."
Notes to editors
- Randall & Vickers is a financial claims management company helping UK consumers 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 in Manchester city centre or through a small team of homeworkers