CREDIT CARDS
Banks given PPI Complaint Handling Extension
An extension has been granted for banks to deal with the backlog of Payment Protection Insurance (PPI) complaints to ensure they are handled correctly.
The Financial Services Authority (FSA) has announced the temporary extension for Barclays, Lloyds Banking Group and RBS.
While their rules make it necessary for the firms to respond to new cases within eight weeks, the extension agrees this can be put on hold, and additional time is now available for them to deal with PPI complaints received since the end of the judicial review.
The firms are required to keep PPI complainants and their customers fully informed with their progress, and provide the FSA with regular reports on compliance. The FSA expects all PPI complaints handling to return to the requisite eight week standard by 1st January 2012.
“We want to see all PPI claims for compensation dealt with swiftly and appropriately,” commented Margaret Cole, the FSA’s interim managing director of the Conduct Business Unit.
“We will be monitoring their progress carefully to ensure the new deadlines are met, that complaints are dealt with as promptly as possible and the backlog is cleared as a matter of urgency.”
In response to Barclays’ announcement that they intend on compensating customers who were mis-sold PPI by them will be dealt with on a ‘no questions asked’ basis, Peter Vicary-Smith, chief executive of Which? said it is good Barclays are acknowledging their mistakes.
“Banks have a lot to do to re-build their reputation after over a decade of mis-selling PPI and then mishandling complaints about it,” he explained.
He hopes this move by Barclays will have a domino effect and other banks will follow suit, so consumers feeling to brunt of mis-sold PPI can be compensated accordingly and the scandal can be forgotten.
Tags: bad credit credit cards, bank account, BANK ACCOUNTS, bank cards, basic bank accounts, Cashplus, compare credit cards, CREDIT CARDS, fairfx anywhere card, free travel money cards, PPI complaints, prepaid cards UK