Barclays, Lloyds Group and RBS given more time

biondani

The FSA are being their usual useless selves again and have now extended the period that Barclays, Lloyds Group and RBS can take to look at claims from 8 weeks to 16 weeks. Details here.

No details on what they are going to do with cases that have going back many more than 16 weeks. Why aren't the FSA kicking the banks into action rather than lying back and taking whatever the banks want to throw at them in terms of excuses?

Ian

biondani

Just looking at the BBC website about the Barclays announcement and it refers to the above extension but also says that all PPI complaints put on hold by the above 3 banks due to the judicial review must be settled by the end of August:

From here

Normally, complaints would have to be dealt with in eight weeks.

Now the FSA has decided that as a temporary measure, complaints put on hold during the judicial review must be settled by the end of August.

Fresh complaints since the end of the judicial review but received before 31 August must be dealt with in 16 weeks.

And PPI complaints received after the end of August but before the end of 2011 can be dealt with in 12 weeks.

After that, the normal eight-week timetable will apply.

Margaret Cole of the FSA said this would help firms process complaints "properly and fairly".
"Some firms are facing a huge backlog and now a surge of new complaints, which has created a bottleneck," she said.
"It is not in the interests of consumers to receive further poor handling of their complaints as a result."

Ian

magpiecottage

What this has meant for Barclays is that they have been forced to pay out on everything, even fraudulent ones, and will pass the costs on to consumers.

src007

Barclays haven't been ''forced'' to pay out. This isn't true. They have created a very big problem for themselves by ignoring the FSA for a long time. Now refunding all the old complaints is the only way they have to dig themselves out of their own quagmire.

Its just sad that those consumers in financial difficulty have had to wait 9 months for a fair outcome to their complaints (when it should have taken 8 weeks for the bank to respond!).

For a few it will come too late.

They also don't need to pass cost to the consumer.

RBS paid out one billion in bonuses last year. I suspect that Barlcays paid out the same (if not more).

By conincidence Barclays expect PPI refunds and administration to cost a billion pounds.

How about a year of cancelled bonuses and then no costs have to be passed to the consumer?

Just a crazy idea. :rotfl:

(I'm also sure that the cost of refunding PPI will never come close to matching the profits made from selling it).

magpiecottage

src007 wrote: »

They also don't need to pass cost to the consumer.

But that is a commercial decision and I can't see them doing otherwise.

marshallka

magpiecottage wrote: »

What this has meant for Barclays is that they have been forced to pay out on everything, even fraudulent ones, and will pass the costs on to consumers.

How do you know they are paying out fraudulent claims? What evidence do you have of this?