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Customers could be waiting more than a year for PPI compensation

19 April 2012

Customers who were mis-sold payment protection insurance by leading banks and lenders could be waiting up to a year for their compensation payout, research has found.

Payment protection insurance policies were mis-sold to millions of customers by the majority of financial firms, but it can be a useful policy to protect you financially should you lose your income.

You can compare payment protection policies with Money Expert.

Thousands of customers are still claiming compensation for mis-sold payment protection insurance, otherwise known as PPI.

The Financial Ombudsman Service (FOS) has said it expects to deal with more than 140,000 cases between 2011 and 2012 – accounting for more than half of its workload for the entire year.

But it has been found that a number of banks and financial firms are delaying the process of compensating customers.

The payout period is supposed to be 28 days, but many customers have been left waiting more than six months for compensation. Furthermore, if your claim is initially rejected by the lender and you have to involve the FOS, you could potentially be waiting more than a year for compensation from the lender.

Lloyds TSB has been one of the biggest culprits in the PPI scandal and there have been a number of reports of customers waiting more than six months for their compensation, even after a payout has been agreed.

“The vast majority of our customers are receiving PPI payments well within our target of 28 days,” a Lloyds TSB Loans spokesperson told LoveMoney.

“However, due to an isolated issue, some Lloyds TSB Loans customers have experienced a delay with their payments. We are sorry for any inconvenience this has caused our customers as this is not the level of service we aim to provide.”

You can compare payment protection policies with Money Expert.

  • Please send me an claim form for
    PPI, I have had a few unsecured loans and all of them had PPI.
    Thanks,
    Koysor Syed
    07748 338613 (M)

    Koysor Syed  |   London  |   10 Oct 2012

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