Following Barclays’ declaration that it would contact more than 9404 consumers of Barclays and Barclaycard, Lloyds may contact more than 15,000 consumers with wrongly-rejected PPI claims.
The estimate by experts comes after Barclays must contact consumers who haven’t received their annual statements. The annual statements include the customers’ terms and conditions for payment protection insurance.
Due to Barclays’ failure, it must consider all 9,404 consumers mis-sold PPI. The consumers should receive complete compensation including direct redress.
Lloyds has more than 10,000 consumers mis-sold PPI. With over 7 out of 10 PPI in favour of consumers, Lloyds may need to call more consumers.
Currently, Lloyds is the biggest mis-seller of payment protection insurance with a bill of £16 billion, half the UK’s PPI total of £32 billion.
So far, about £23 billion has been returned to customers according to the Financial Conduct Authority. The remaining amount of £11billion is allocated to compound PPI interest rates along with an additional 8 per cent annual interest rate to keep up its value against inflation.
Banks are to receive immediate relief from the PPI scandal through the FCA’s proposed PPI deadline by 2018. However, consumer groups are concerned because there is a lack of PPI claims process simplification. The efficacy of the FCA’s advertisement campaign is in question due to only raising awareness without technical aid.