Mis-sold Mortgage Claims > Mortgage News
Banks are Dragging Heels over Mis Sold Compensation
Fri, 20 Jan 2012
Banks are being criticised for continuing to stall with regard to compensation claims for customers who were mis-sold Payment Protection Insurance .

Many thousands of people have been unwittingly sold worthless or overpriced cover just in case they defaulted on mortgages, loans or credit cards .

2011 saw the High Court order lenders to reimburse any mis-sold insurance plus with eight per cent interest on top.

It is anticipated that payouts are likely to total £9 billion.

Several of the banks are dragging their heels.

Lloyds is considered to be the worst offender. The taxpayer-backed bank incurred a loss in the first half of 2011 due to being slammed for £3.2billion due to the PPI scandal.

Many months on, numerous customers are awaiting payouts.

Customers making a claim are rewarded with a lengthy eight-page questionnaire asking questions such as the name of bank, the date the payment was taken out and what it was sold to cover.

The Financial Ombudsman Service used the same questionnaires to settle disputes, with no previous information to work with.

The banks, however, have this knowledge and the cas-hflow worked out. They already know the answers to a minimum of 20 of the 25 questions on the form.

Lawyer Dean Dunham, who handled claims for customers prior to the court ruling, stated that: "Banks know that when asking the general public to fill out long forms, a lot do not have the time or know-how to do it."
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