Banks Attempting to Claw Back PPI

Banks are attempting to take back PPI compensation that was originally paid out to mis-sold victims.

Some customers have received thousands because banks have allegedly miscalculated their PPI payouts. Some banks are demanding that customers hand back their refunds of up to £15,000 as many as four years after the original payout was made.

At this point, it is not clear how many could be affected by these supposed mistakes, but people in the know have warned that thousands of people could be at risk.

The way that PPI was added to credit agreements means that it’s very difficult to figure out whether the customer received the right amount of compensation or not.

When companies uncover large numbers of errors they launch a much wider investigation and experts claim that the PPI cases that have just been discovered as mistakes could be just the beginning.

One such example is of a couple who were told that they must repay nearly £15,000 that they were initially awarded by Barclays.

Over the years the couple had taken out a series of business loans with the bank. In 2012, they asked Barclays if they had ever been sold PPI alongside their loans and whether they could be due a payout.

The bank said it had calculated that they were owed precisely £14,739 in compensation. This money was invested in expanding their business operations.

This year Barclays wrote to them again claiming that they were entitled to another £3,000. The couple contacted the bank to check whether this was correct.

Shortly afterward they received a letter saying they should never have been paid the original sum, demanding they repay it — four years after receiving the cash.

The Financial Conduct Authority have stated that there are no set rules to stop the banks claiming back the compensation, so this could become quite a familiar theme in the near future.