All the major banks and lenders set aside huge pots of cash to pay back a record number of customers who were mis-sold or misled to purchase payment protection insurance. Therefore, we have pulled together a profile of all the major banks so that you are able to see how much your bank has in the pot to pay back to its customers.
Out of all of the banks, Lloyds has set aside the largest amount of money to deal with PPI claims. The total in the pot is £6.7bn which covers Lloyds, Black Horse Finance, Halifax & RBS so there is plenty of money for you to get your hands on!
By the end of 2012, £4.3bn had been spent so there was still one third of the budget left waiting to be claimed. £700m of this was used for the admin costs which shows how big the industry has become. There was up to 6,000 operatives managing claims at any one time, showing that the bank has taken the issue seriously and that they are extremely well prepared for the amount of claims that are still yet to be made.
However, Lloyds recently received a £4.3m fine as they were found to be delaying the payment of compensation to many of their customers.
If you have previously had a loan or credit card with Lloyds then expect a letter from them as they are currently working through their records to contact all of their previous customers in regards to a potential PPI claim.
On a much smaller scale, HSBC has employed over 700 employees to deal with claims and have so far paid out a total of £800m. They have recently increased the total of the pot by a further £199m to deal with the mass of claims that have been submitted.
Santander have made a bold claim that they had a small majority of the PPI market which insinuates that they will not make the claiming progress an easy one. However, they have put aside £538m to deal with claims from customers who were previously with Alliance & Leicester and Abbey.
Nationwide put £173m into the pot for PPI claims, and has paid out only a small percentage of this at it currently stands. Of the claims received by Nationwide it has been revealed that 42% have never even been sold a policy. which accounts for the relatively small pay out.
As Barclays has such a large array of services, the company has set aside a huge £2.6bn and has already used around half of this to settle claims and to cover admin costs. However, it has been revealed that half of the claims submitted to Barclays have been deemed as invalid.
About 2,500 staff have been assigned to the PPI claims process, and have now finished contacting customers who they think are entitled to a PPI refund refund.
Whilst the banks and lenders are writing to those they think are due refunds, if you feel you are due a refund or have been rejected, then PPI Refund could help you get the money you deserve.