MSE News: Barclays pledge to settle on-hold PPI complaints

This is the discussion thread for the following MSE News Story:

"The bank is to compensate in full all PPI complaints that were put on hold on or before 20 April ..."
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Comments

  • di3004
    di3004 Posts: 42,579 Forumite
    edited 13 June 2011 at 10:52AM
    Great news, and well done Barclays!:T

    And it will also be a case load taken from the FOS as well, to whoever complained pre 20 April and complained to them (on hold).

    Fingers crossed other banks will do the same.
    The one and only "Dizzy Di" :D
  • cappo
    cappo Posts: 2,121 Forumite
    di3004 wrote: »
    Great news, and well done Barclays!:T

    And it will also be a case load taken from the FOS as well, to whoever complained pre 20 April and complained to them (on hold).

    Fingers crossed other banks will do the same.




    As martin says Di it'll be interesting to see what if anything barclays does towards the previously rejected cases as this is still a grey area,despite the result of the j.r
  • dunstonh
    dunstonh Posts: 116,341 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    As martin says Di it'll be interesting to see what if anything barclays does towards the previously rejected cases as this is still a grey area,despite the result of the j.r

    The understanding is that Barclays are doing this as it will be cheaper this way. For new complaints they will be reviewing them normally. So, there is no reason for them to look at old complaints.

    The JR has no impact on complaints that were looked at and rejected. If they do anything on old complaints, it will be voluntary.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
    Combo Breaker First Post
    di3004 wrote: »
    Great news, and well done Barclays!:T

    And it will also be a case load taken from the FOS as well, to whoever complained pre 20 April and complained to them (on hold).

    Fingers crossed other banks will do the same.

    I don't think it is a case of well done but the FSA has given them so little time that they had no option.

    This means that even fraudulent complaints will be paid out on which seems contrary to the FSA's statutory aim to reduce financial crime. The cost of it will be passed on to other customers.

    I am not suggesting that all complaints are fraudulent or that Barclays did not missell - but there are wider consequences to the FSA's decision.
  • Niggly_2
    Niggly_2 Posts: 325 Forumite
    Purely a PR excercise. Customers will still have to wait until August to get their compensation and among the statements today is that the FOS have doubled the time for Barclays to deal with the complaints post 20th April from 8 weeks to 16 weeks. Smart move by the bank it will save millions in the recruitment and ongoing costs of recruiting more staff to deal with the claims that will and have poured into them.
    On the First Plus portfolio up to 99% of claims were being upheld by the regulators anyway. Its a no brainer whilst at the same time side stepping the issue of why post April customers have to wait at least 10 weeks to receive their cheque. More like 10 months if you are at the back of the line having just submitted a claim.


    I am pleased for the customers who initiated the battle and who I hope get full redress. However what about the people with claimed the day after the 20th April and upto today. They are still going to have to fight tooth and nail to get the money paid and wait a substantial amount of time to be paid now the waiting time is 16 weeks. What about the people who have claimed to find out the introducing broker and insurance underwriters have gone bust re post Jan 2005 cases. I bet those not up held cases will have to join the back of the line again.


    They should have bitten the bullitt and offered all their ppi clients redress that would have been fair and just and sit nicely along Mr Diamonds statement We have taken this decision because it is in the best interests of our customers, as well as for Barclays and its shareholders; creating certainty, particularly regarding past issues, is of benefit to all parties.

    We don’t always get things right for our customers; when we get them wrong, we apologise and put them right. That’s our commitment to our customers, and it applies to the way in which we will deal with PPI complaints.”


    N
  • dunstonh
    dunstonh Posts: 116,341 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    On the First Plus portfolio up to 99% of claims were being upheld by the regulators anyway.

    MPPI is under 40% upheld. For that, its mainly single premium that is the issue and Barclays didnt do single premium MPPI. So, would you go and void all policies even if the vast majority have them by choice?

    If you did void all the policies and refund, how would you deal with the next load of complaints from people who then suffer a claimable event and complain they have no insurance as they voided it?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • src007
    src007 Posts: 420 Forumite
    edited 13 June 2011 at 6:20PM
    I don't think it is a case of well done but the FSA has given them so little time that they had no option.

    I am not suggesting that all complaints are fraudulent or that Barclays did not missell - but there are wider consequences to the FSA's decision.

    This is Barclays decision, not the FSAs. You seem to have a very short memory. Since when did the FSA ever encourage complaints to be put on hold at all? My recollection is that the FSA told the banks they should process all complaints as normal throughout the Judical Review (in the interest of treating customers fairly) and had they done so, there would be no backlog whatsoever.

    The backlog is entirely the fault of the bank. In fact Barlcays are getting preferential treatment because they are allowed 16 weeks to issue final responses when good firms, who follow the rules only have 8 weeks.

    They could have employed enough staff to deal with all complaints on a case by case basis if they wanted to. They have billions of pounds!

    I thought the FSA had disbanded or something, so it's good to see them taking some action! :rotfl:
  • webweaver_2
    webweaver_2 Posts: 15 Forumite
    First Anniversary Combo Breaker
    We were mis sold ppi by Egg on both cedit cards and loans, which I understand now belong to Barclays. Will we still have to put a claim in or do we just sit and wait?
  • Niggly_2
    Niggly_2 Posts: 325 Forumite
    edited 13 June 2011 at 6:25PM
    On the First Plus portfolio up to 99% of claims were being upheld by the regulators anyway.


    They should have bitten the bullitt and offered all their ppi clients redress that would have been fair and just and sit nicely along Mr Diamonds statement

    N
    [/QUOTE]

    I think you may have got the wrong impression

    I was refering to the first plus portfolio and secondly I used the term offered. All FP clients have single premium protection and to date the upheld rate is 99% when taken to FOS. The single premium charged is nearly always greater than the maximum allowable benefit and FOS have stated this is fundementally wrong and clear evidence the policy has been mis-sold.

    Barclays could write to all these customers and say we think we got it wrong and if you want to cancel the policy we will offer a no quibble payment/refund in full.

    I didnt realise that the site treated new posters in the way you have answered my comments.

    n
  • I have had two loans I the past 20yrs with Barclays and don't know if I paid ppi how do I find out if I've paid it.
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