PPI victims still waiting on compensation

Despite massive public outcry and promises to the contrary, thousands of borrowers mis-sold payment protection insurance (PPI) are still waiting for compensation from the UK's biggest lenders.

Earlier this year, UK courts forced major lenders, including Lloyds TSB and Barclaycard, to compensate duped consumers for millions of pounds in mis-sold PPI. But with the holiday season now just one month away, those struggling to fund the festivities without the thousands they are owed are being forced to wait longer than necessary.

The banks involved signed up for a 'gentleman's agreement', under which those affected were to be paid within 28 days of the court's damning judgement. But instead of electronically transferring the money or sending a cheque, banks are leaving their customers in the lurch, The Daily Mail has reported.

"With Christmas fast approaching, it is time banks gave their customers an early present by promptly paying the compensation they are owed," said Adam Phillips, Chairman of the Financial Services Consumer Panel, which represents consumers' interests.

"It is very worrying that after so much criticism over PPI, banks and other financial institutions are still not compensating customers quickly. If the financial services industry wants to regain consumer trust, then it has to clean up its act."

PPI, meant to cover people who lost their jobs or became too sick to work from falling behind on their debts, was sold to millions of people who didn't want it, need it or who would never have been able to claim on their policy before the courts put an end to it. And since then, banks have struggled to clear a huge backlog of complaints put on hold while they fought a High Court case.

However, lenders lost their case in April and were given until August 31 to work through the backlog.

This week, Barclays, Bank of Scotland, Halifax, HSBC and Santander say they are meeting the 28-day deadline, while a Lloyds TSB spokesman said, "We apologise for any delays".

If you were mis-sold PPI, contact our experts today and we'll do all we can to make sure you get the compensation your deserved as swiftly as possible.