CAB - Banks should not be cutting PPI pay-outs on a whim
26 Mar 2014 11:30 AM
Banks need to put the
PPI problem right once and for all says Citizens Advice, as a BBC investigation
says Lloyds Banking Group has been cutting the compensation it pays to payment
protection insurance (PPI) claimants.
Citizens Advice Chief Executive
Gillian Guy said:
“Banks should not be
cutting pay-outs by second guessing what consumers would have done if the banks
hadn't been peddling shoddy and unsuitable PPI products. People who have
been mis-sold PPI have a right to compensation. When banks make mistakes
they need to do the decent thing by their customers by putting things right
once and for all.
“PPI is still an ongoing
issue for many consumers. Last year we helped with over 9,000 problems with
payment protection insurance including almost 2,000 on making a complaint or
getting redress.
“Banks’ failure to
sort out the PPI problem early on gave rise to claims management companies
taking up to £5 billion of customers’ compensation.It’s
important banks’ PPI claims system is simple and fair so that customers
can trust that when they make a claim it will be handled
appropriately.
“You do not need to use a
claims management company to make a claim for mis-sold PPI. If you have made a
claim to your bank, and you are unsatisfied with their response you can take it
up with the Financial Ombudsman Service.”
Citizens Advice
Notes to
editors
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service celebrates its 75th anniversary. We’ve planned a year of activity
running from January to December 2014. Contact the press office to find
out more.
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