UK consumers are reporting banks who have lodged legal demands to repay the PPI compensation they obtained from their banks.
If you are alarmed by one of these demands here’s a breakdown of your legal rights, proper recourse and if you truly have to pay that miscalculated PPI claim payout.
Who Went Wrong?
Clearly, this situation is not of your own fault entirely. Banks are responsible for proper consumer payout calculations
According to The Financial Inclusion Centre Founder Mick McAteer:
“It’s virtually impossible for individual savers to work out the PPI redress they are due, so it seems unfair to expect someone who has spent this money to pay it back.”
While James Daley, founder of consumer website Fairer Finance, added: “I wouldn’t have thought that these are isolated cases.
FOS: Businesses Can Ask For Its Money Back
Unfortunately, banks have the right to demand their money back if proven it was a miscalculation on their part.
According to the Financial Ombudsman:
“There is no rule to say that a business can’t ask for money back if they have noticed a problem.
“However, if a complaint was brought to us, we would consider what is fair and reasonable.”
What You Can Do
The best recourse for these issues is to understand how to properly calculate your PPI refund and actual PPI compensation.
Remember that PPI compensation is often 8% of your APR total. More in understanding how to calculate your PPI refunds.
If the banks gave you more than your calculations, then you need to give them back their money. If not, then you have a legal leverage on your end.