It was worse enough for consumers to pay for £3,500 worth of insurance they could not use. However, banks stiff enough to demand a reconsideration of the PPI claims process in 2011 was more troublesome than making a claim. But the UK’s financial sector had suffered enough with the following embarrassments of 2015.
RBS Lacked Money
RBS suffered less than Lloyds. But it does not mean it didn’t have its own troubling times dealing with PPI refunds. RBS admitted it lacked the funds to repay all the consumers it mis-sold PPI. Its bill, which is about £8 billion, is only a part of its entire bill comprised of a huge fine for its toxic mortgage bond scandal in the United states.
Santander’s £25,000 Payout
Years ago, a woman who purchased a Debenhams card from GE Capital Bank earned a PPI with her card. She had the insurance and paid for it until its value skyrocketed only to find she couldn’t use the insurance. GE, now owned by Santander could not repay the woman because of insufficient guidance.
After the Susan Plevin ruling, Santander immediately paid £25,000 to the woman without attracting the attention of the media.
Lloyds Leading Everyone
The worst offender of the UK’s PPI mis-selling scandal, Lloyds figure of £14 billion repaying all its consumers mis-sold the insurance policy is almost half the industry’s collective total of £24 billion in PPI refunds.
Aside from such, Lloyds had faced numerous fines for mishandling consumer PPI refund claims. In 2013, a reporter posing as a call centre recruit claimed trainers urged agents to avoid delving further into a customer’s PPI details, which would allow them to reject the claim immediately.