Claims Standard Council (CSC) Chairman Anthony Sultan, stated that banks should not blame claims management companies and that they are having trouble keeping up with processing payment protection insurance claims due to their own actions. He states that it was the banks’ faults in the first place that they are compensating for mis selling PPI, which brought them an estimated profit of £5 billion yearly for each bank.
Banks have blamed claims management companies such as MisSoldPPIClaimsCo.co.uk, for taking payment from customers for every successful claim and for increasing bureaucratic costs of banks. However, the CSC says that CMCs only “fileld the gaps” that banks left behind.
PPI or payment protection insurance is a policy designed to provide repayment for any loan, mortgage or credit card when the customers gets sick, injured or unemployed. The guaranteed benefits became impossible to claim as many citizens bought the insurance ineligible for its exclusions.
The high PPI bill in the United Kingdom now amounts to £13 billion. Barclays now has a total of £3.7 billion and Lloyds is leading the pack with £5.3 billion. RBS reserved a further £400 million making its total £1.7 billion and HSBC announced it would be adding £223 million more to its £1.1 billion compensation package.