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PPI and Barclays: The Compensation Pot is Bigger Than Ever!

There can no one in the UK who is NOT aware of the mis-selling of payment protection insurance (PPI)!

Despite it being a policy that was sold to people to allegedly help them in their hour of financial need should the unthinkable happen, it was not the insurance they thought it would be…

  • It was very expensive for the cover it offered
  • The cover was limited but customers were not told this when they were sold the policy
  • Frequently, the term of the insurance policy did not cover the length of the loan
  • It was an insurance that paid out in only 15% of claims made against it

Was every bank involved?

More or less, and one bank that the compensation pay-outs have hit hard is the Barclays' group. In late October 2014, the bank announced that it was to set aside an extra £170 million to cover more compensation claims for mis-sold PPI.

This additional money now means that its overall provision for mis-sold PPI stands at a staggering £5.02 billion. Only a few months previous, in July 2014, the bank announced it was adding another £900 million to the pot.

Thus far, figures it released recently was that it had already paid £291 million in compensation during the 3 month period from July to September along, as well as estimating that it still has £1.2 billion worth of claims left to be paid.

And, like other banks in the UK, it is facing another dispute and has set aside £500 million in the wake of allegation that it was part of rigging the foreign exchange markets.

Are you a customers of Barclays?

If you are, then you really need to check whether PPI had been added to your accounts or not; the bank themselves, along with other major lenders in the UK, have already given indications that they know they still owe billions in PPI compensation.

Since January 2011, the Financial Conduct Authority statistics show that £16.3 billion has been paid out in PPI compensation, with a large amount every quarter still being paid to customers.

But, despite these astronomical figures, Barclays, like many other banks in the UK, are still posting profits, with a 4% in their pre-tax profits to £1.2 billion in the third quarter of 2014.

Have you claimed your slice of this compensation? If not, act now by calling Payment Protection Scotland to see how we can help you get back every single penny of your money…

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