As shareholders are recommended to vote against Bob Diamond’s £17 million plus pay packet, many consumers may feel aggrieved that mis-sold PPI policies sold by Barclays are seemingly swept under the carpet as they continue to wait for redress.
Following last years High Court judgement, 20th April, dismissing the action brought by the British Bankers Association relating to redress for PPI claims, Bob Diamond announced on 9th May that Barclays would not be joining an appeal application against the judgment, this was welcomed. He said, “It was in the best interests of our customers. Barclays will assess and address their complaints as quickly as practicable.”
Did Barclays get it wrong with PPI claims?
Ironically, Diamond did not preside over mis-sold PPI in the UK; however, the initial provision agreed with the FSA of £1 billion is believed to be wrong and is under review. Many believe that Diamond wants to move on and rightly so, but you can’t take the helm of a troubled ship and sweep the waves out of your way. Many PPI claims are still being processed and consumers will inevitably be in a long queue.
Is a ‘DIY’ PPI claim the best way to proceed?
Most banks find themselves in a similar position to Barclays, some joined them in their decision to make a provision for redress, these include Lloyds Banking Group (£3.2b). Large claims management companies (CMC’s) are known to work closely with banks to ensure claims are processed efficiently on behalf of claimants. Statistics prove that the majority of consumers use a CMC to process their PPI claim, suggesting that if the DIY route is considered by consumers, it could prove to be a minefield for many.