June 15, 2020

What have the banks paid out in PPI claims?

Author:

Crystal Group

“If you were mis-sold a PBA, you could be in line for a Mis-sold Packaged bank Account Refund compensation.”

But how long does it take to get a refund, and is there any time limit for making a claim?

What have the bank paid out in PPI claims?

It was discovered that providers were mis-selling PPI to their customers. Either by not telling them what it was and adding it to their agreement without their consent or by insisting they had PPI when it was not appropriate.

Following the High Court’s ruling that banks must reimburse their customers for mis-sold PPI, the floodgates opened for claims.


So, how much have the banks had to pay out in compensation so far?

Bank payouts

In 2017, the banks paid out billions in PPI compensation claims:

  • Barclays: £9.1bn
  • HSBC: £4.05bn
  • Lloyds: £18bn
  • RBS: £5bn

HSBC’s lender, HFC Bank was also fined £1.09m for mis-selling PPI.

To add to the banks’ misery, the Financial Conduct Authority, (FCA) has set a deadline of 29 August 2019 for customers to make claims for mis-sold PPI. They will also be running a public awareness campaign to make sure that everyone who was mis-sold PPI will have an opportunity claim before the deadline.


mis-sold ppi

More payouts expected …

Following a landmark court ruling in Manchester, billions more pounds in compensation may be claimed.

The court found in favor of a couple called Doran who were sold PPI by Paragon Personal Finance. The court demanded that Paragon refund not only the PPI premiums, but also the commission they paid, plus interest for a policy that they were sold legitimately. The commission is the money that was paid to lenders by the insurers who provided the PPI policy.

Unfortunately, the Court ruling in the Doran case doesn’t mean that consumers who have already received compensation for mis-sold PPI can claim more, but it may allow rejected claims to be reconsidered.


Plevin

In another case that was brought against Paragon Personal Finance, a client called Susan Plevin claimed back 76% of her PPI premium, including the commission.

The Supreme Court ruled in Mrs Plevin’s favour. Agreeing that because the amount of commission had not been disclosed to her at the time she bought the PPI policy, the policy had been mis-sold.

That ruling means that consumers can now reclaim any commission paid to the lender that amounts to more than 50% of their PPI premium. So far, around 1.2 million complaints have been brought successfully under this so-called Plevin rule.

New PPI ruling will let millions more claim compensation

See how Crystal can help you

If you’ve received compensation for a financial claim, it’s always worth seeing if you have a valid claim for a tax refund.

August 10, 2021

Tax relief for work outlays

In this guide, we take a look at how much money you might be...

June 23, 2021

PPI Tax Reclaim – How...

If you were awarded a pay-out for mis-sold PPI, you might be entitled to...

June 18, 2021

7 Facts You Need to...

If you were awarded a pay-out for mis-sold PPI, you might be entitled to...