Barclays Bank has been experiencing increasing levels of complaints over Payment Protection Insurance since the beginning of the year. Between January and June it saw the number of complaints rise by 93% and this is not expected to decrease any time soon.
Since the banks lost their legal battle over PPI rules in April, the number of complaints has increased dramatically. This time last year Barclays had received 38,000 complaints over insurance compared with 73,000 this year which is nearly double.
The bank has stated that it predicts this number will have increased further by the end of the year. It said it is dedicating a lot of hard work towards resolving the complaints promptly and making sure those who have been waiting for a resolution the longest are dealt with first.
Similarly, Lloyds TSB has also revealed that the number of complaints it received in the first half of 210 was less than half the amount it received between January and June this year.
Barclays has allocated around £1B for PPI repayments to those who claim they have been mis sold the insurance and vowed that all complainants would be reimbursed without question before 20th April. PPI is deemed as being mis sold if lenders did not ask for it or felt that they must take it out if they were to successful in their loan application. It seems that a lot of the PPI was automatically added to loans without lenders knowledge and in a lot of instances; individuals who tried to make a claim on the insurance do to being unable to work as a result of redundancy or ill health were unsuccessful due to the conditions of the policy.
The challenge from the High Court against the banks accused of mis selling the insurance resulted in a loss for many of the banks who are now having to pay out billions of pounds in compensation.
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