Have the banks underpaid PPI compensation by £1bn?

bank_sign According to reports, our blessed banks have underpaid compensation for mis-sold payment protection insurance (PPI) policies for a figure around £1bn.

They can't even do an apology properly, can they?

These shortfalls apparently affect credit card customers with Lloyds Banking Group, Barclays, Capital One and MBNA.

It seems that they've not paid back charges and penalty fees for those with a policy that is linked to a credit card. While some have seen thousands of pounds repaid in interest and premiums, some customers have been stiffed.

These figures come from a BBC report and, it is worth noting that they've not shared their calculations with the Financial Conduct Authority - it seems the FCA have a difference figure and have said: "In some cases a penalty fee may have been incurred for going over a credit card limit regardless of the PPI, in which case we would generally take the view that this charge would not need to be refunded."

Lloyds Banking Group said in a statement: "We are committed to doing the right thing for our customers and this includes ensuring that each PPI case we receive is investigated on an individual basis. When a customer lets us know that they may have incurred other costs because of their credit card PPI policy, we will investigate and make an appropriate refund."

This is a story that will rumble on and on.

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