THE CITY watchdog and the banking industry do not recognise the claim that banks have underpaid payment protection insurance (PPI) mis-selling victims to the tune of £1bn, the groups said yesterday.
An analysis of figures, commissioned by the BBC from an undisclosed source, had claimed banks were failing to repay the fees charged to borrowers as part of the PPI process.
The analysis put the underpayment at £1bn, but the Financial Conduct Authority had not been given access to the numbers or the methodology, and so it is thought to be sceptical of the size of the underpayment.
“On the issue of over-limit fees, or other penalty fees or charges levied on a credit card which is covered by PPI: firms should refund these fees or charges if they arise as a result of the PPI mis-sale,” said the FCA in a statement.
“But this is not a simple process. Firms must consider the individual circumstances of the claimant, for example whether it was the PPI or other expenditure that led to the penalty charge being incurred.”
Those customers who still felt they had been given the wrong amount of compensation should take their case to the Financial Ombudsman Ser-vice, the FCA added.
The British Bankers’ Association (BBA) described the reporting as “alarming” and cast doubt on the validity of the numbers.
“Any mis-selling of any financial product is wrong. That’s why banks worked hard with regulators to ensure the right compensation scheme was introduced for anyone who has been mis-sold Payment Protection Insurance,” said a BBA spokesperson.
“More than £14bn of redress has already been paid and billions more are expected to be distributed in the coming months. If you feel you did not receive the compensation you deserve from a PPI claim, we urge you to get in touch with your bank at the earliest opportunity.”