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RBS Payment Protection

It is estimated that the Royal Bank of Scotland has sold payment protection cover to between 1.6 and 2.4 million customers. This figure includes sales made by Natwest. Of this figure it is impossible to estimate how many RBS payment protection policies were mis-sold. Mis-selling has been highlighted as a huge issue throughout the financial industry; however, and it is estimated that as many as two million customers may have been mis-sold a policy on a loan, mortgage, credit card, store card or hire purchase agreement.

In 2010, RBS was one of the major lenders who supported the British Banking Association’s (BBA) request for a high court review of new Financial Service Authority (FSA) guidelines. The new guidelines aimed to protect customers from the threat of mis-selling by ensuring lenders fully explained the terms of the policy and emphasised the fact the cover was optional. Whilst the decision was pending, RBS payment protection policies were placed on hold. In April the High Court returned its verdict finding in favour of the FSA. Following the announcement, many major lenders pledged funds to resolve the PPI issues. The Royal Bank of Scotland announced the allocation of £850 million to deal with RBS payment protection claims. This is in addition to the £200 million already paid out by the lender.

Following the judicial review it is understood RBS and several of the other major UK lenders are facing significant backlogs of payment protection insurance claims. As a result, the FSA has increased the amount of time some lenders have to examine complaints. Under current rules complaints must be examined within eight weeks. Under temporary new rules lenders may now be given up to sixteen weeks.

Following the BBA’s defeat and the allocation of funds by the UK’s largest lenders, it is hoped that there will be a changing attitude by banks toward the issue of mis-selling. In the past many lenders have remained reluctant to admit wrongdoing and many claims have been referred to The Financial Ombudsman for review. With new FSA guidelines in place it is hoped that lenders will be more willing to settle complaints internally. It is likely to take some time; however, before many are able to work through their backlogs.

Following a 2006 investigation you may also be able to recover unfair credit card charges. In 2006 The Office of Fair Trading (OFT) found that many charges applied for credit card late payments and over the limit fees were unfair. It was discovered some lenders were charging as much as £35. The OFT reviewed the situation and decided that a maximum charge of £12 should be applied. In light of their findings, you may now be able to reclaim unfair charges paid in the past.

If you have been mis-sold a payment protection policy or you have played unfair bank charges you can start your claim today by speaking to a member of our team on 0207 471 2000. We have already assisted 60,000 customers to make claims.


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Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website www.gov.uk/moj/cmr number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B16, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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