Barclays promising 'no quibble' PPI payouts

13 June 2011

Barclays has promised to pay out some of its customers' payment protection insurance complaints on a quibble-free basis.

The bank previously announced it has put aside £1 billion to fund its PPI compensation bill, following the High Court ruling on the mis-selling of PPI by high street banks.

Barclays customers whose complaints were put on hold during the Judicial Review will now see their claims resolved and paid out in full as a "gesture of goodwill without any admission of liability".

Those eligible for the full payout must have filed their complaint before 20 April this year and will receive a letter from Barclays notifying them of the Bank's move. They will then receive a further letter by the end of August with details of payment. Refunds will cover the cost of PPI premiums and any interest paid on these premiums plus a further 8% interest, minus the value of any previously successful claims.


Barclays chief executive Bob Diamond previously apologised to customers for the mis-selling scandal, saying: "We don't always get things right for our customers; when we get them wrong, we apologise and put them right."

The bank has since issued a statement saying: "Working in close co-operation with the FSA [Financial Services Authority] and the FOS [Financial Ombudsman Service], and in recognition of the delay customers have experienced whilst awaiting the outcome of the High Court judgment, we can confirm that we are contacting customers whose complaint was put on hold on or before 20 April with an offer to settle their complaint in full as a gesture of goodwill."

Barclays says it will be "business as usual" for PPI complaints received after April 20. PPI claims will be addressed within 16 weeks, according to the FSA and FO's agreed temporary extension to handling times. This resolution period will then reduce to 12 weeks for complaints received between 1 August and 1 October 2011 and back to the standard eight weeks from 2 October onwards.

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