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PPI – Costing Time AND Money to Sort Out

The payment protection insurance (PPI) mis-selling saga is hitting banks in terms of money, resources and time.

Timeandmoney

Costs for some banks in the thick of the PPI scandal - such as the biggest bank, Lloyds Banking Group - are spiralling and not just in terms of how much compensation they are paying out. The internal wage bill for banks and lenders of staff dealing with PPI claims is ever growing, with many banks also relying on agency staff too. And with the August 2019 PPI deadline looming, if the expected avalanche of PPI claims happens, this wage bill could significantly increase.

How much time per case?

Even straightforward cases suck time and resources. For example;

A straightforward PPI claim from a customer was that she was covered by her employer's sick pay policy, therefore, didn't need the PPI on her loan. A quick check on the status of this sick pay meant that this was indeed the case and her PPI compensation claim was upheld - in other words, she is entitled to receive PPI compensation.

This process alone took over several hours to conclude, and now the bank representative needs to work out how much PPI compensation she is entitled to receive.

More complex case take many more hours to resolve and this is before any compensation calculations are made.

PPI Resources

Look at the investments banks in the UK have to make in order to process PPI compensation claims (2012/3 figures, therefore, these will have changed):

  • Barclays employed 3,400 staff across 10 centres, 8 of which are in Britain and 2 in India, to process PPI claims. Their compensation bill at the time was £12billion and growing, a figure that seems set to rise as an estimated 34 million policies were sold since 2001 across the banks.
  • By January 2013, Barclays employed 600 people in a centre in south England, working two shift patterns from 7 am to 11 pm.
  • Barclays are not the only bank gearing up to meet the deluge of PPI compensation claims - Lloyds Banking Group had 6,000 staff working on claims, HSBC has 600 with the Royal Bank of Scotland have 1,800 staff working through PPI compensation claims.

Make a claim today

Some customers prefer to make their claim through a claims management company (CMC). As a reputable CMC, our terms and conditions are transparent and easy to understand - all you need to do is call us and let's talks about making a claim for PPI compensation on your behalf.

All you need to do should you decide to use Payment Protection Scotland for your compensation claim is complete a few simple forms - and then sit back and relax and let us do the hard work.

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