With just one year to left to make a PPI claim, a Which? survey has revealed the banks making the claims process tougher than it needs to be for claimants.
RBS, Nationwide and Lloyds Banking Group have been reported to be the most difficult banks and building societies to deal with when making a PPI claim, demanding pages of additional information and insisting on unrealistic deadlines.
The survey results revealed banks in the RBS group were the hardest to make a PPI claim with after 24 per cent of respondents told Which? they found the process difficult.
19 per cent of respondents said they had a challenging experience making a PPI claim with Nationwide, while 18 per cent reported a similar experience with Lloyds Banking Group.
Earlier this year, Which? reported Lloyds Banking Group were potentially deterring claimants after many complained they had received a 12-page questionnaire requesting historical data. The bank also suggested an unrealistic 14-day deadline to return the forms or risk the complaint being dropped.
Which? heard from claimants who were left feeling frustrated and discouraged after receiving these questionnaires.
In our recent survey, Which? found Lloyds Banking Group (74%) and Santander (70%) are the banks most likely to request further information by completing a questionnaire.
While Lloyds recently announced it has set aside £460 million for PPI claims in the next year, Which? is concerned the excessive red tape may put off some consumers from making a claim.
Customers found HSBC to be the easiest to make a PPI claim through after 64 per cent said they found the bank’s claims process straightforward. 56 per cent of respondents also said they had an easy experience making a claim with Barclays.
Both banks previously received positive feedback from both successful and unsuccessful claimants who praised the banks for their prompt response and action.
Despite some of the bank’s excessive paperwork demands, nearly one third (31%) of respondents said they had been successful in their PPI claim and received on average £1,500 as compensation.
According to data from the FCA, since January 2018 banks have paid on average £391.8m of compensation each month. Over the next 12 months, there could be millions, if not billions of pounds left to claim.
Gareth Shaw, Which? Money Expert, said:
“Time is ticking, there is just one year left to make a PPI claim. It is frustrating some banks appear to be making it harder than it needs to be and claims management companies have also taken advantage of this situation.
“We are urging anyone who may have been mis-sold PPI to make a claim. There are free tools to use online or you can apply directly to your bank – you have nothing to lose.”
Notes to editors
Which? surveyed 609 adults who used the Which? Consumer Rights PPI claims tool in August 2018. Of respondents who made a PPI claim, Which? asked about experience claiming with their bank.
Which?’s free PPI claim tool can be found here: https://www.which.co.uk/consumer-rights/advice/how-to-reclaim-mis-sold-ppi