Barclays is not complying with regulations relating to payment protection insurance (PPI) that were introduced by the Financial Services Authority earlier this year, it has been claimed.
Under the new rules, customers who cancel their PPI policies have to be offered “fair and reasonable” refunds.
However, according to This is Money, Barclays has not been adhering to the guidelines stipulated by the FSA.
The personal finance website cited one case where a woman paid over £6,000 upfront for PPI on a 25-year loan
When she cancelled her loan seven months into the full term, she was refunded just £1,874.63 of the total £6146.99 she had initially paid.
Barclays declined to reveal how the sum had been calculated, saying only that she had previously been warned paying off the loan
early would mean that there would be no full refund of the PPI payments.
In related news, UK payments association Apacs has revealed that people are “beginning to appreciate” that it is cheaper to make cash withdrawals on their debit card rather than their credit card.
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