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Barclays to pay back all outstanding PPI claims
Business digest: Claims made before April 20 to be settled to allow new cases to be reviewed more quickly
Barclays bank has said it will automatically reimburse all customers to whom it sold payment protection insurance and who complained before April 20 in an effort to clear a backlog of complaints.
New rules brought in by the Financial Services Authority regarding the sale of PPI require banks to review sales of the product to its customers whether or not they have lodged a complaint of mis-selling. The banking industry lost a High Court challenge against the new rules in April.
Barclays said: "We can confirm that we are contacting customers whose complaint was put on hold on or before 20 April with an offer to settle their complaint in full as a gesture of goodwill."
These customers will be reimbursed the full premium plus eight per cent interest. Barclays explained that its policy would allow it to assess new PPI claims more quickly.
Barclays has put aside £1bn to cover the cost of reimbursements, while Lloyds has reserved £3.2bn, RBS £850m and HSBC £269m.
Read a full report at BBC News. ·
