Mis-sold PPI Compensation Claims costs RBS £850m, new report shows

The Royal Bank of Scotland (RBS) has paid out some £850 million of compensation over the past six months to those people who have been mis-sold payment protection insurance (PPI), it has been revealed.

According to the part-nationalised bank’s 2011 interim results, it set aside the funds to settle claims made by Britons who bought the product at the same time as taking out loans or credit cards, but found it was sold to them dishonestly.

Some banks originally told customers that it was obligatory to purchase PPI, but also failed to ask necessary questions regarding their health that could have ascertained that they were actually ineligible to claim.

In addition, many salespeople at the institutions added PPI to clients’ loan agreement behind their backs.

This conduct resulted in a judicial review by the Financial Services Authority earlier this year, which eventually ruled that banks should pay money back to customers that had been mis-sold PPI and stop selling PPI at point of sale of other loans.
It is not just RBS that has been affected by this, however. Barclays set aside £1 billion for PPI compensation claims.

Commenting on the news, Matt Corbett, Solicitor at Clear Law Solicitors said: "It is unsurprising to see how much money is now being paid out by banks to cover mis-sold PPI compensation claims. Dishonest selling of the product went on for many years and left loyal customers out of pocket.

“Our advice to those who think they might have been scammed by the banks is to seek legal advice from a law firm that specialises in handling claims of this kind. At Clear Law, for example, we have vast experience helping clients recover the money that was wrongly taken from them.”

Clear Law Solicitors specialises in mis-sold PPI compensation, personal injury compensation claims and accident at work compensation claims. For more information about mis-sold PPI claims visit www.clearlawonline.co.uk/  

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Matt Corbett

Solicitor

Clear Law Solicitors

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