Barclays and Lloyds in PPI Turmoil

Thursday, October 4, 2018

bank notes

Lloyds and Barclays are two of the banks who have been rapped by the Competition and Markets Authority (CMA) watchdog for failing to send out reminders or correct information on thousands of customers with Payment Protection Insurance (PPI) policies between 2012-2018.

Lloyds Banking Group has been issued with legal directions by the CMA over its failure to send out an annual PPI review to 14,000 customers between 2012 and 2018. It also sent out incorrect information to 2,884 customers. CMA mentioned it is not the first time that Lloyds does not fulfil the legal rulings, being pinpointed for “serious breaches” against unaware consumers.

Furthermore, Barclays failed to give the right information to thousands of their customers who inquired about having PPI since 2012.

To add to the Barclays PPI turmoil, a recent comment by Barclays Chairman John McFarlane caused distress amongst consumer bodies and individual consumers when he claimed that a large proportion of those claiming PPI do so on a fraudulent basis. Barclays chairman also accused the government of allowing the fraudulent PPI claims to go unobstructed.

Gillian Guy, chief executive of Citizens Advice Bureau (CAB), also commented: “PPI is one of the largest banking scandals in this country’s history. It was regularly mis-sold, it was expensive and it was often a poorly designed product that people neither wanted or needed. It is right that people are able to claim compensation. The banks dragged their feet when problems with PPI were first raised and they are paying the price for that inaction.”

PPI or payment protection insurance was a good additional service for people who could find themselves unemployed or with long-term illness and could not have the means to pay their mortgage, personal loan or credit card. However, on many occasions it was sold or added without the consumer’s permission, even given to people who were not eligible for it.

We’re here to help

It is estimated that around 64 million PPI policies were sold going back as far as the 1970s. If you want to find out if you have any PPI on your mortgage, personal loan, car finance or credit card, then click here and complete the PPI claims form. If you need advice with your claim, call us on 0800 542 6866 and we will be more than glad to assist.