Are banks offering ppi claims?

mp22

Has anyone heard that banks are starting to send out letters inviting ppi claims??

J_i_m

Bank are certainly not sending out letters inviting PPI complaints or claims.

What they might be doing is writing to customers who like like they were systematically miss-sold that there is a "possibility" they might have been miss-sold and informing them of what they're entitled to do about it.

dunstonh

Has anyone heard that banks are starting to send out letters inviting ppi claims??

Yes.

However, it was a couple of media outlets getting the wrong end of the stick. On the 8th March, the FSA repeated existing rules about having to be pro-active if systematic failings were found (i.e. trends). This would require the bank to write to people who also suffered the same way. This has always been the case and the FSA was just reminding the banks. So, lets say they have found that an individual at a branch was making continued mis-sales, they would have to proactively write to all the people that person sold to.

There is still some discussion going on at the moment between banks and the FSA on writing letters. Whilst it would initially increase the liability to the banks, it would allow them to bring in a three year time bar. So, some banks may prefer to write out, take the hit now and draw a line in the sand rather than have to deal with complaints for nearly a decade after.

The media seemed to get the impression that the banks would have to write out to everyone but that is not the case.