RBS doesn’t have the best reputation at the moment, especially following the recent IT systems glitch which caused chaos for thousands of customers who couldn’t access their money, or didn’t receive payments that should have been deposited in their accounts.
Furthermore, the Royal Bank of Scotland has been forced to retain almost a billion pounds in reserve for a steady stream of customers wanting compensation for mis-sold PPI.
Want to know if you can claim your money back?
A Brief History of PPI
Payment Protection Insurance was intended for customers purchasing loans, credit cards and various other forms of credit. The product was designed to cover those who were affected by accident, illness or unemployment during their payment plans, but it was mis-sold to millions of people, and RBS customers were amongst those most widely affected. Customers were pushed into accepting PPI when they did not need it, or wouldn’t have even been able to claim on the policy. This rendered the product a useless expense for many, which often increased credit repayments by hundreds or even thousands of pounds for customers over the years.
Banks Challenge the FSA
The Royal Bank of Scotland, amongst other large banks, initially fought attempts by the Financial Services Authority to create new compensation agreements for customers in 2011. Almost a decade after the FSA first began to investigate malpractice in the PPI industry, the High Court ruled that banks, including the Royal Bank of Scotland, must investigate back-dated claims and review previous claims already rejected. In 2012, RBS has been made to contact millions of customers informing them of PPI mis-selling, and acknowledging that people have the right to investigate a claim. The Royal Bank of Scotland has also promised to pay interest to customers with active claims up until the date payment is made, so that they don’t lose out when waiting for the regulatory 28 day window period that elapses once clients accept RBS offers of compensation.
Claiming Compensation from RBS
Getting your money back can be a complex process. The FSA has repeatedly investigated RBS and other large banks for failing to act promptly enough when customers approach them. You can present your case to the ombudsman after an eight week period elapses, or if the Royal Bank of Scotland reject your claim for any reason.
You can either claim directly with RBS by writing to them with as much information your policy and the reasons you believe it was mis-sold as you can. Alternatively, you could seek the assistance of a claims management company. Bear in mind that is likely to incur a fee though.