PPI Claims And Disputes On The Rise

Barclays Bank has witnessed a 93% increase in the number of complaints relating to loan insurance received in the first half of 2011. The bank had participated in a legal dispute relating to PPI rules and had lost the same in April. This resulted in a drastic increase in the number of complaints as compared to the first half of 2010. The bank received 73,000 complaints in first half of 2011 as compared to just 38,000 complaints for the same period in the previous year.

A spokesperson from Barclays stated that the bank expected complaints relating to PPI to be significantly greater in the last six months of 2011. This was attributed to the decision of the court in the legal proceedings initiate by high street banks. The spokesperson reiterated the commitment of the bank towards clearing PPI related complaints and claims as quickly as possible. Barclays intend to prioritize those customers who could not file claims because of the legal proceedings.

The bank also intends to finalize all the claims in an open and transparent manner without any delays. Lloyds, another high street bank, stated that it had received more than double the number of insurance complaints in first half of 2011 as compared to the first half of 2010. From just 95,000 complaints in first half of 2010, the bank received more than 200,000 complaints in the corresponding period of 2011.

Barclays has tried its level best to convince customers of its commitment. Earlier in 2011, it decided to set aside an amount of £1 billion for compensating victims of PPI mis-selling. The only condition was that the claim should have been filed before 20th April. Bank also promised to settle the claims without any hassles or quibbles. From 38,000 complaints in the first half of 2010, the bank received 59,000 in the second half and has received 73,000 complaints in the first half year segment of 2011.

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