Banks are being accused of giving wrong information to customers looking to get compensation for mis-sold Payment Protection Insurance (PPI). The accusation has been made by the Alliance of Claims Companies - a trade body for claims management companies. It said a number of customers had been incorrectly told by their bank that they never had a PPI policy. In response, the banks said that information given out was accurate "in most cases". Faults 'across the board'

"It is a massive problem", said Simon Evans, the chief executive of the Alliance of Claims Companies. "Consumers are telling claims management companies (CMCs) that they have approached their banks and they have been told they have had no PPI in some cases. Yet when the case has been investigated subsequently by our members we find that is untrue."
Barclays recently admitted giving wrong information to tens of thousands of its customers who had got claims management companies to check for PPI on their behalf.

The bank blamed an error in its system that handles requests from CMCs. 'Incorrect information'

Sharon Humby from the Isle of Wight says she was told by NatWest that she had never had PPI - which she found surprising because she knew that it was not true. She remembered years ago her bank manager had insisted she would need to take out payment protection insurance otherwise she could not have a loan. Sharon told the BBC's You & Yours programme: "The bank should have had those details right in front of them and the gentleman that I spoke to should have given me the correct information at the time of my phone call".