The Financial Service Authority (FSA) has agreed timeframes over Payment Protection Insurance complaints with three high street banks that were prolific in the recent mis-selling scandal.
Banks had recently claimed they cannot cope with the hefty backlog of complaints that have come about from the thousands of cases put on hold pre-Judicial Review, teamed with the 26% increase in claims made post ruling¹.
But under the new agreements, these three banks must respond to complaints made before 20th April, i.e. before the High Court ruling, by the end of August.
Any claims made after the ruling and on or before 31st August, will be responded to within 16 weeks while any complaint made on or after the 1st September can expect a response within 12 weeks².
These timeframes are only applicable to complaints made on behalf of Lloyds TSB, Barclays and RBS customers. All other PPI claims are unaffected.
Between them, Lloyds, Barclays and RBS have set aside over £5 billion to cover the cost of PPI mis-selling compensation, over half of the estimated total bill³.
¹Financial Times (May 2011)
²The Telegraph (June 2011)
³Financial Times (May 2011)
Content correct at time of publication