PPI

A company has been fined almost £2.4 million after "serious failings" with its PPI complaints handling process meant customers initially missed out on more than £70 million in compensation.

Complaints about payday loans and packaged bank accounts have skyrocketed over the last year, but not by enough to knock PPI off its perch as the most complained about financial product.

Opportunistic claims management companies are siphoning off up to a third of compensation cash paid to consumers and have already pocketed around £5 billion from PPI payouts, MPs have warned.

Barclays has offered 10,000 of its PPI customers the opportunity to cancel their policies and receive refunds on payments plus interest, after it breached an order by the Competition and Markets Authority (CMA).

The Financial Conduct Authority has today published its consultation paper on plans to bring in a 2018 deadline for PPI claims – and revealed that 18 firms which received the most PPI complaints will be asked to cough up £42 million to fund an ad campaign promoting the deadline.

Lloyds Banking Group has set aside an extra £500 million to cover payment protection insurance (PPI) mis-selling claims, which takes the group's overall PPI provision to £13.9 billion.

PPI mis-selling victims will be subject to a time-bar on claims – as we've been warning over the past few weeks – under plans revealed by the regulator this morning.

Lloyds Bank is yet again the worst of the major banks and building societies for wrongly rejecting both payment protection insurance (PPI) and other banking complaints, new figures from the Financial Ombudsman Service show.