Barclays to compensate PPI customers

Barclays has confirmed it is contacting customers whose payment protection insurance complaints were put on hold on or before April 20 to recompense them in full.

In a statement released today, the bank says: “Following the judicial review announcement of April 20, Barclays made a commitment to process all on-hold PPI complaints as soon as practicable.  

“We have said before that when we get things wrong, we apologise, and work hard and work fast to put them right as quickly as possible.

“Working in close co-operation with the FSA and the FOS, 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 April 20 with an offer to settle their complaint in full as a gesture of goodwill.”

Peter Vicary-Smith, chief executive at Which?, welcomed the move and expressed hope that other banks will do the same.

He says: “It’s fantastic to see Barclays stepping up in this way, acknowledging their mistakes and refunding customers what they’re owed, no questions asked.

“Hopefully this will have a domino effect and other banks will follow suit – the sooner the banking industry can consign the PPI mis-selling scandal to the history books, the better.”

Also today, the FSA announced it has granted Barclays, Lloyds Banking Group and Royal Bank of Scotland temporary time extensions for the handling of PPI complaints.