• Current: Banks 'in denial' over PPI, say Which

 

Banks 'in denial' over PPI, say Which

Banks 'in denial' over PPI, say Which

Which? have criticised banks over the PPI scandal, saying that they have been 'in denial' about the true costs needed to redress customers.

There has now been over £12.3bn set aside by the banks, making PPI the biggest mis-selling scandal of all time, but provisions could still run out in a matter of months.
 
Lloyds have today announced a further £1 billion provision for repaying mis-sold PPI, taking the total amount set aside by the banks to a whopping £12.3 billion.  
 
The statement from Which? claims that, if current pay-out rates continue, PPI provisions would run out by the end of 2012, and even Lloyd's increased provisions would only last until March next year.
 
Which? chief executive Peter Vicary-Smith said:
 

“The banks have been in denial about the true scale of this scandal. Their piecemeal approach to topping up provisions is an inadequate response to what is now the biggest financial mis- selling scandal of all time.
 
“The banks must now come clean about how many more complaints they’re expecting, publish monthly updates on the amounts that have been paid back, and claw back bonuses from executives who presided over £12.3bn mis-selling travesty.
 
“Consumers are continually being let down by banks. We’re campaigning for big change so that banks work for customers, not bankers and to protect the public from further mis-selling scandals.”


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Comments

  1. John WestJohn West02 November 2012 10:02:12

    This problem is, as 'Which' suggests ongoing as banks have been fielding claims for the last few years hoping that claimants will become exhausted, or possibly die, before settlement. They are sitting on a mountain of unresolved claims, leaving aside those with the Ombudsman. The Ombudsman is now advising that even the most minor of disputes will take at least a year to be addressed, never mind resolved. This would indicate that they also are sitting on a mountain of claims. Banks have a systematic procedure for refuting claims, delaying claims and placing every bureaucratic obstacle in claimants way in an attempt to burn off as many claims as possible. This attitude to their customers is a scandal in itself and highlights that financial institutions have not changed their spots, just their rhetoric. I am an advisor who has pursued several claims on behalf of clients and some cases have taken over two years to resolve, purely as the result of Bank duplicity. There have been several cases of deliberate misinformation being given in an attempt to deflect the claim. A significant additional compensation should be paid when it is seen that financial institutions have deliberately sought to frustrate legitimate claims. I have no sympathy for claims companies, or their charges, but they would not exist if the financial institutions addressed and resolved their misdemeanors, rather than seek to avoid them. The advice for claimants to pursue their own claims will leave many frustrated and out of pocket, having been cheated by the banks once again. Plus ca change .....

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