by Mark Johnston
Barclays the Worst bank in PPI Reclaims.
Payment protection insurance (PPI) is an optional policy often taken out with either loans, mortgages, overdrafts and credit cards and should cover consumers in the event they can not meet their repayments due to involuntary unemployment, illness, accident or disability.
A court case in April found that many payment protection insurances (PPI) had been mis-sold, this then forced financial institutions to set aside large sums of money in order to make repayments.
Statistics have shown that many of the major financial institutions are now repaying customers with the minimum of fuss.
Barclays has stated that they will acknowledge an initial complaint in writing within 5 days of its receipt and will then contact the customer directly within 8 weeks with a decision based on the individual case information.
If the bank is then offering a refund they aim to make sure that customers are then paid within 28 days of the mutal agreement of the offer.
However, it has emerged that due to the huge number of claims being noted by Barclays, the bank has been stretching its payment protection insurance (PPI) repayment deadline.
Although the lender has created around 300 new jobs just to handle the rise in complaints.
Research has revealed that Barclays was one of the most complained about banks in Britain and the lender saw the largest number of payment protection insurance (PPI) complaints especially in the first 6 months of 2012 and this totalled around 19,522.
The Financial Service Ombudsman, which deals with issues that banks, building societies and insurance companies have failed to resolve on their own, have recently stated that more of Barclay’s cases are referred to them than any other bank.
Some experts believe that Barclays makes is customers with a valid complaint ‘fight tooth and nail’ for a payout.
Many of Britain’s banks have suffered heavy losses as a result of millions of claims for mis-sold payment protection insurance (PPI), none more so than Barclays.
In a recent report the banking giant Barclays has set aside another huge sum of around £700 million to further cover costs from customers who are now claiming the money back from payment protection insurances (PPI) they were mis-sold in the past.
This move now takes the total estimated bill of money the lender has put aside for repayment of these claims to a whopping £2 billion and this brings the industry’s bill on a whole to around £10 billion.
This latest disclosure from Barclays comes just months after the lender raised hopes within the industry that the worst of the payment protection insurance (PPI) scandal was over.
In June 2012, Chris Lucas, finance director at Barclays, said “the volume of payment protection insurance complaints received by the bank have started to fall following a surge at the start of the year”.
However, in October 2012 the bank was forced to back track on their original statement as the trend started to reverse and this saw claim volumes rise once again in August and September.
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