Banks should not be cutting PPI pay-outs on a whim

Banks need to put the PPI problem right once and for all says Citizens Advice, as a BBC investigation says Lloyds Banking Group has been cutting the compensation it pays to payment protection insurance (PPI) claimants.

Citizens Advice Chief Executive Gillian Guy said:

“Banks should not be cutting pay-outs by second guessing what consumers would have done if the banks hadn't been peddling shoddy and unsuitable PPI products. People who have been mis-sold PPI have a right to compensation.  When banks make mistakes they need to do the decent thing by their customers by putting things right once and for all.

“PPI is still an ongoing issue for many consumers. Last year we helped with over 9,000 problems with payment protection insurance including almost 2,000 on making a complaint or getting redress.

“Banks’ failure to sort out the PPI problem early on gave rise to claims management companies taking up to £5 billion of customers’ compensation.It’s important banks’ PPI claims system is simple and fair so that customers can trust that when they make a claim it will be handled appropriately.

“You do not need to use a claims management company to make a claim for mis-sold PPI. If you have made a claim to your bank, and you are unsatisfied with their response you can take it up with the Financial Ombudsman Service.”

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Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk . You can also get advice online at adviceguide.org.uk

  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers

  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends

  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.