UK investigators and local media revealed that banks, including Lloyds, Barclays and RBS, have used a regulatory provision called “alternative redress” or “comparative redress.” The provision allows them to replace a single-premium PPI with a regular-premium PPI, which costs less. Consumers with £2780 PPI refund may have further compensation provided they have evidence of owning a single-premium PPI.
According to former financial expert and now-journalist Cliff D’Arcy, it was a “scandal coming out of a scandal.” Investigators estimate banks to have saved millions from using alternative redress.
They also revealed that RBS used the regulatory provision early 2013. Barclays used the provision on 20% of their complaints from October 2012-2013. Lloyds was found to have used the provision from February 2013 until present.
Consumers interviewed by local media said that banks were still putting their interests first despite their dwindling number of financial complaints and praise from the Financial Conduct Authority.
According to a payment protection insurance claims company representative, consumers could make a claim for alternative redress by calling their bank and asking if they were given the regulatory provision. They could ask the bank to do something about it, or they can refer their claim to the Financial Ombudsman.
