Despite recently being voted the “least trusted” bank, Barclays bank has reduced the number of people handling PPI claims by closing its Glasgow office – which currently handles claims for Payment Protection Insurance.
This comes on top of an investigation by regulatory body, the Financial Conduct Authority (FCA), which found that there was a serious problem with the way complaints about PPI claims were handled – the review found that 60% of lenders were found to be acting at an unsatisfactory level.
Chief Ombudsman, Natalie Ceeney, has decided to step down from her head role in the Financial Ombudsman Service after their one millionth Payment Protection Insurance complaint.
After four years in the role, Ceeney has been at the forefront of the Payment Protection Insurance (PPI) scandal clean-up from the very beginning, driving improvement in the handling of claims. As Chief Ombudsman, Ceeney’s time and energy has been predominantly spent dealing with the banks and lenders responsible for the PPI scandal, cleaning up their inefficient complaint handling procedures.
For the first time since the Payment Protection Insurance (PPI) scandal began, complaints against PPI decreased in the first half of this year according to figures released from the city watchdog.
The report from regulator, the Financial Conduct Authority, revealed that just fewer than 1.8 million new PPI complaints were made in the first half of 2013. This marks an 18% drop from the industry peak of the 2.2 million complaints made during the previous 6 months.
Royal Bank of Scotland (RBS) recently added another £250m to their compensation fund for customers which were mis-sold PPI by the lender.
The recent addition brings their provisions to £2.6bn of which – as of September 2013 – £1.9bn has been paid out.
RBS said that of this amount set aside £2.3bn is to compensate customers, and £300m for administrative costs.
This week has seen the overall Payment Protection Insurance (PPI) pot increase by over £1billion in one week. Banks and lenders responsible for the PPI scandal have collectively set aside £19.5billion, of which £12billion has already been paid out to mis-sold consumers.
Royal Bank of Scotland, the most recent banking group to set aside money for their PPI compensation pot, has upped their amount by £250 million, bringing their total to £2.6billion.