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PPI complaint extension granted to Barclays, Lloyds and RBS

Extension to ease bottleneck of complaints to FOS

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The FSA has granted Barclays, Lloyds and RBS a temporary extension to deal with PPI complaints

The Financial Services Authority (FSA) has temporarily extended the period in which Barclays, Royal Bank of Scotland (RBS) and Lloyds Banking Group can respond to PPI complaints.

PPI providers, until now, had eight weeks to deal with complaints under FSA rules before the complainant could escalate the issue to the Financial Ombudsman Service (FOS). Barclays, Lloyds and RBS now have up to 16 weeks to deal with complaints. All other PPI complaints and providers are unaffected. 

Barclays ‘no questions asked’

The news comes as Barclays announced today that it will automatically compensate those whose complaints were put on hold as result of the judicial review. Other outstanding complaints will be dealt with as usual. Previously rejected complaints will not be reopened, but if customers feel they still have valid grounds they can complain again.

Which? chief executive, Peter Vicary-Smith, said:

‘It’s fantastic to see Barclays stepping up in this way, acknowledging their mistakes and refunding customers what they’re owed, no questions asked. Hopefully this will have a domino effect and other banks will follow suit – the sooner the banking industry can consign the PPI mis-selling scandal to the history books, the better.’

Barclays, Lloyds and RBS

Many banks delayed dealing with complaints until the outcome of the judicial review. As the complaints exceeded the eight week turn around time, customers began forwarding the complaints to the the FOS who became inundated with requests.

Providing extensions for these firms will allow them to deal with the backlog, allowing the FOS to deal with cases that need further intervention, rather than those stalled by the review process.

Which? chief executive, Peter Vicary-Smith, said:

‘Even without the delay caused by their legal action, some banks have a terrible record for dealing with complaints within the regulator’s eight week time scale. Until these firms are hit with substantial fines they have little incentive to change their inefficient practices.’

89% of people who have taken a PPI compliant to FOS have had it upheld in their favour.

If you think you’ve been mis-sold PPI, take a look at our guide.

FSA grant PPI extensions

The temporary extensions for the three firms to deal with complaints are in place until 1 January 2012. The FSA’s extensions mean

  • PPI complaints still with the firm but put on hold during the judicial review will receive a decision by the end of August.
  • PPI complaints received after the conclusion of judicial review but on or before the 31 August will be responded to within 16 weeks.
  • PPI complaints received on or after 1 September and before 31 December 2011 will be responded to within 12 weeks.

The conditions of these extensions mean the firms must keep PPI complainants and their customers fully informed and provide the FSA with regular reports on compliance.

End to poor value products

Which? has been at the to put an end to poor value financial protection products. We’ve been helping consumers claim back the money paid for mis-sold PPI policies by providing an online tool that formulates a PPI complaint to email or post direct to your provider. To date, we’ve had over 5,000 use the online tool. 

Keep up-to-date with our campaigns by following Which? Action on Twitter or facebook.

Have you used a claims management company?

If you have used a claims management company to get PPI redress, tell us about your experiences at news@which.co.uk.

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