Banks to hire 6,000 to handle PPI complaints

5corpio started a blog post Banks to hire 6,000 to handle PPI complaints
12 May 2011, 16:38

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Banks to hire 6,000 to handle PPI complaints

Me thinks, they need to re-hire ALL those Employees that they Laid off last year and the Year Before - And after ALL those monies paid out for Redundancies, they Now going to re-Hire them 'This does show how much the BANKS waste out money.......'What goes around, Comes around'

Originally posted by 5corpio

Banks to hire 6,000 to handle PPI complaints

Lloyds, RBS, Barclays and HSBC face huge staff costs and admit £5bn needed to compensate PPI customers.

The big high-street banks are preparing to hire up to 6,000 workers to tackle complaints from millions of customers wrongly sold payment protection insurance.

The banks are believed to be seeking temporary offices to house the army of staff needed to contact customers who may be in line for a payout after the banks abandoned their legal action against a decision by the Financial Services Authority to demand they compensate customers mis-sold PPI.
Contingency plans are now being dusted down by the banks, which have disclosed that they face bills of more than £5bn to compensate their customers andcover the adminstration costs involved.

None of the banks – Lloyds Banking Group, Royal Bank of Scotland, Barclays and HSBC – was prepared to disclose their staffing requirements as a result of the PPI climbdown. However, industry sources said that they expected up to 6,000 staff to be needed.

Bailed-out Lloyds, which started the capitulation by the banks last week by announcing a £3.2bn provision, has linked up with outsourcing company Huntswood to bring in 500 extra staff. Industry sources believe its headcount is likely to swell – at least temporarily – by 1,000 or more while it works through all the complaints it faces as the largest....Read more HERE

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1 comment
- #1
  
  5corpio commented
  
  18 May 2011, 19:46
  
  Editing a comment
  
  UPDATE:
  PPI mis-selling claims swamp banks
  
  Complaints about payment protection insurance double and consumers warned it will take 'months if not years' to get redress
  
  High street banks are not able to cope with the torrent of claims for mis-selling of payment protection insurance (PPI), according to the Financial Ombudsman Service.
  
  Complaints about PPI doubled to 104,597 in the 2010-2011 financial year, the highest number ever received in a year about a single financial product, the ombudsman said.
  
  In the busiest year of its decade-long history, with a million inquiries resulting in 206,121 disputes, the ombudsman said 51% of the new complaints were about PPI. But the ombudsman warned consumers not to expect compensation immediately, claiming it could take banks "months, if not years" to deal with the backlog of complaints alongside new cases.
  
  Half of the total number of disputes referred to the ombudsman involved four of Britain's largest financial services groups:
  
  Lloyds (with 44,601 new complaints in the last financial year); Barclays (17,471 new complaints); the Royal Bank of Scotland (15,113), and HSBC (12,269).
  
  Natalie Ceeney, chief ombudsman, said:
  
  "The outstanding feature of our year was banks contesting PPI complaints all the way, case-by-case. It's been a year of non co-operation from the banks. We are able to deal with the level of work because we can expand our staff, but banks are not presently able to cope, they just do not have the knowledge."
  
  Despite banks recently abandoning their legal.....Read more HERE
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Banks to hire 6,000 to handle PPI complaints

Banks to hire 6,000 to handle PPI complaints