UK consumers are reporting banks who have lodged legal demands to them to repay the PPI compensation that they were initially awarded.
We’ve compiled all of your legal rights and all proper recourse and how to figure out if you genuinely have had your refund mis-calculated.
What Went Wrong?
Obviously, this problem cannot be placed at the feet of the consumer – the banks are responsible for calculating the correct payouts.
It can be really difficult for individuals to work out the PPI refund they are due, so it is unjust to expect customers who have already used the refund to give it back.
Financial Ombudsman Service: Businesses ARE Entitled to The Money Back
Unfortunately, the FOS has confirmed that the banks do have the right to claim their money back if there was an example of miscalculation.
The Financial Ombudsman released this statement:
“There is no rule to say that a business can’t ask for money back if they have noticed a problem. However, if a complaint was brought to us, we would consider what is fair and reasonable.”
‘What Can I Do?’
The best thing for anyone affected by this issue is to fully calculate whether your PPI and PPI compensation is the same.
Remember that PPI compensation is often 8% of APR total. See our blog on working out your PPI Refund here.
If the banks gave you more than your calculations, then you need to give them back their money. If not, then you have a legal leverage on your end.