When the Payment Protection Insurance scandal blew up in 2011 it was announced that between them the major banks in the UK were to put aside a massive £7.6 billion to cover PPI claims. After months of disputing the issue and a lengthy High Court battle, the banks had finally thrown in the towel and admitted they were in the wrong.
The news that such a high sum was to be put aside to compensate those people who had been affected was met with gasps from some areas of the industry. Had the scandal really been that big? Just how many victims of mis-selling were there?
Indeed, many were shocked as the realisation dawned over just how many people had lost money as a result of poor and inaccurate selling techniques.
The latest news then is set to leave many more people open-mouthed as four of the biggest banks in the UK – Lloyds Banking Group, Barclays, HSBC and the Royal Bank of Scotland – are set to reveal they have put aside a further £1billion for mis-selling claims.
Is this good news?
It certainly is. What the latest move from the lenders shows is, firstly, they continue to admit liability and are ready and able to pay back what is owed to their customers. However, what it also demonstrates is the fact hundreds of thousands of people have taken on the banks and won. The fact that more cash has had to be put aside shows that payouts so far have been big!
This should give anyone deliberating about whether or not they should make a claim the incentive to take the first steps towards getting their hard-earned money back.
If you were mis-sold a PPI policy that was of no benefit to you due to your employment status or medical history, if you were forced into buying the policy or, indeed, if you were sold it without your knowledge then a part of that £1 billion is rightfully yours.