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August 31 deadline news

Hi

I read an interesting article at the weekend regarding 31 August deadline for the big banks o settle PPI payouts. Basically, the article said that due to a backlog in claims, it is unlikely that they will hit their targets for clearing this before 31st August.
HSBC, for example, says it will send out decision letters ahead of the deadline, but customers might not receive their offers of compensation until four weeks later.
Lloyds says it is on track to provide ‘a clear response’ to each customer ahead of the deadline.
However, only some will get an offer of compensation at the same time, with others facing a wait to establish what the bank is willing to pay. RBS says customers will get a decision and an ‘indication of the figure we will pay’.
Barclays has decided not to investigate fully all claims, but is checking only that someone was a customer and had PPI with the bank before it pays out as a ‘goodwill gesture’. The bank says it is on target for all customers to receive offer letters and detailed calculations of what it will pay by the end of this month. Cheques will follow within four weeks. But on new claims, Barclays says it too will split the decision on whether someone has a valid claim from the calculation of how much redress is due. The bank says all customers will get a yes or no within the watchdog’s 16-week target, but calculations of compensation will follow later. And some who took their cases to the Financial Ombudsman Service may also not have claims settled on time.
The FSA says customers should get a decision and, where the complaint has been upheld, an individual offer of redress by the deadline.

Payment should be ‘promptly’ after this, with the regulator normally expecting payment within 28 days of the customer accepting an offer.


Robin

Comments

  • Firms given the waiver only have to get a final decision in the post by the deadline. It does not have to reach you and they are NOT obliged to offer redress if they do not consider it to be justified.
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