Tag Archives: Barclays

Top ten institutions accused of mis-selling PPI plans

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And the winner is … Barclays.  Or the biggest loser, depending on how one looks at it.  One of the High Street’s longest-established financial institutions was also the one that most people complained about in the second half of 2011.  Around 12,000 complaints were brought against the bank by its own customers, with a massive 99% of these being successful.  This is the same percentage of successful cases brought against Lloyds and MBNA Europe Bank.

While an average of 72% of all complaints were upheld by the Financial Ombudsman Service across Britain’s banks and other lenders, complainants were successful in 84% of those cases brought against Barclays.  The company has admitted that PPI claims were responsible for a 67% rise in complaints against it.

Lloyds had been a clear leader in the first six months of 2011, with the most complaints about its services, but was pushed into third place by Barclays, with MBNA in second.  Across the industry, complaints against banks continued to rise.  Complaints regarding mortgages rose by 38% to 5,202, complaints about insurance increased by 22% to 14,000 while cases involving credit cards were up by 9%, reaching almost 29,000.

After consumer pressure, it emerged that banks had been systematically mis-selling PPI to customers, either face to face or over the telephone, for a number of years, and it was viewed within the industry as standard practice.  The lenders were either deliberately not informing their customers correctly about whether taking out PPI was mandatory, whether it could be purchased elsewhere, or selling it to customers who would not be able to claim on the policy.

When it comes to complaints about mis-sold PPI, there are a couple of disparities.  The majority of High Street lenders were unsuccessful in, on average, more than 95% of cases, but Nationwide and Capital One were found to be liable for PPI compensation in only 7% and 11% of cases respectively, despite receiving around the same number of complaints against them.

It emerged that more than £2 billion was paid by all the banks combined in 2011 over PPI mis-selling.  The headline figures have made so much publicity that it has encouraged more and more people to try to find out whether they can reclaim PPI, with banks setting aside an estimated £7.5 billion to cover the expected compensation.

The top ten banks, in order of PPI complaints against them, were:

  • Barclays, with 6,975 complaints, of which 99% were upheld
  • MBNA Europe Bank, 5,377 complaints, 99% upheld
  • Capital One (Europe) 5,057 complaints, 11% upheld
  • Black Horse, 4,999 complaints, 98% upheld
  • Lloyds TSB, 4,257 complaints, 99% upheld
  • HSBC, 2,813 complaints, 87% upheld
  • Bank of Scotland, 1,954 complaints, 98% upheld
  • Nationwide, 1,778 complaints, 7% upheld
  • Clydesdale Bank, 1,336 complaints, 57% upheld
  • HFC Bank, 1,078 complaints, 93% upheld

It is clear from the figures that all lenders have been found to have mis-sold PPI.  It makes sense for anyone who has ever had any kind of loan to see if they are owed PPI compensation.

Lloyds allocates £3.2 Billion to missold PPI Claims

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Lloyds Banking Group confirmed first half losses this year after it allocated a whopping £3.2bn to tackle the PPI claims scandal.

Comparing to a £1.3bn profit last year Lloyds have reported a £3.3bn pre-tax loss in the six months to June.

Putting aside the allocation of money compensating for missold PPI, the bank has seen underlying profits drop to £1.1bn (to 31%), due in part to the economic downturn across the country.

Barclays has also allocated a substantial fund of £1bn towards paying out compensation for ppi claims.

This all points in the right direction for consumers who have waited a long time for the recent judicial review to complete. We will now start to see movement across the board with lenders under strict instruction from the FSA (Financial Services Authority) to deal with their backlog of cases by 31st August 2011. Following this date we will see claims being processed on a case-by-case basis, but the overall wait time should significantly reduce.

If you think you have been missold ppi and you want to make a claim use our online ppi claim form or call us on the phone number at the top of the page. We offer a strict NO WIN NO FEE service with no hidden charges and no upfront fees. It wont cost you anything to find out if you have a ppi claim.

Ban on sale of PPI might go ahead

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Plans to restrict the selling of Payment Protection Insurance might go ahead. within the next few months.

The Competition Commission want to ban the sale of PPI at the time loans and credit cards are sold. The main reason for this is because historically it was the main time where PPI has been missold to consumers.

The Commission has said that this proposal will give consumers more time to make up their mind, as to whether they want to purchase PPI with the lender of their new loan, or whether they even want it at all. The decision is provisional and is open to consultation. The final verdict will come around July 2010.

Barclays have said that PPI is a very useful product to the lender.

The main issue here is that more borrowers will walk away unprotected, and in these uncertain times, this probably isn’t a good thing. However, being missold PPI, obviously isn’t good either.

The mis-selling of Payment Protection Insurance has been going on for some time. Consumers generally have been unaware that this insurance was optional, or that they have the option of shopping around. Many lenders used aggressive selling techniques, mainly because the profit margins on these particular types of products were very high.

PPI claims are on the rise, and we expect them to come to a head some time in 2013. Claiming back missold PPI premiums is your right. The sale of PPI has been dubbed a “protection racket” by some Consumer Groups.

If you have been sold PPI in the past 10 years, make sure to use our ppi claim form here at reclaimyourmoney.com.