BARCLAYS will refund over a thousand customers up to Â£750 each because of PPI mishaps.
More than 1,000 customers will receive compensation after the Competition and Markets Authority (CMA) found that Barclays failed to send Payment Protection Insurance (PPI) information.
PPI providers are required to send annual reminders to customers that set out clearly the cost of their policy, the type of cover they have and to remind them of their right to cancel.
But, the CMA found that Barclays failed to send reminders to up to 1,306 of its former Mortgage PPI policyholders between 2014 and 2017.Â
Adam Land, senior director of remedies, business and financial analysis at the CMA, said: “Barclays will pay customers up to Â£1 million after breaching the CMA’s PPI Order.
“Thatâs an average payment of around Â£750 per customer, which is particularly important as the cost-of-living crisis bites.
“We will now work with Barclays to ensure these payments are made to customers.”
What is payment protection insurance?
You may have been sold PPI if you took out finance during the 1990s or the start of the 2000s.
It was an insurance policy that was attached to products such as loans, mortgages or credit cards.
PPI was meant to payout if the policyholder fell ill, had an accident or lost their job.
It took lots of different names such as:
- Accident, sickness and unemployment insurance (ASU)
- Account cover
- Credit insurance
- Credit protection
- Loan care
- Loan insurance
- Loan protection
- Loan repayment insurance
- Mortgage payment protection insurance (MPPI)
- Payment cover
- Protection plan
How was PPI mis-sold?
Consumer groups started questioning the sales practices of banks and building societies around 2005 after it was found that many borrowers were unaware that they had been sold policies.
Some were also unable to claim despite paying for the insurance such as if they were self-employed or retired.
Another issue was that staff were incentivised to sell PPI with high commissions, which meant a lot of policies were mis-sold.
PPI sales were banned in 2009 and lenders were ordered to consider all complaints in 2011.
The FCA set a deadline for complaints in 2017 that said all redress should be considered by the end of August 2019.
But law firms believe they can still help those who werenât told about commission that was paid to providers using Plevin claims.
This is based on a court ruling in 2014 that found a customer called Susan Plevin was unfairly treated as she was not informed about commission that was taken from her PPI payment.
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