Millions back in consumers’ pockets following banks’ error

Citizens Advice says the £149 million going back to consumers sends a strong message to firms to stick to the rules.

The OFT has announced to today that almost 500,000 consumers are set to share over £149 million of compensation after banks and building societies failed to provide the right information in statements and arrears.
 
Citizens Advice Chief Executive Gillian Guy said: “Millions of pounds going back into consumers’ pockets sends a strong message to banks and building societies to stick to the rules. It’s only right companies pay out when they fail to fulfil their obligations to consumers. 
 
“Customers are at a disadvantage if information is not presented in the right way or it doesn’t clearly include all of the facts.  It is important people are provided with all of the details in order to make informed decisions about their personal finances and kept up to date.
 
“The PPI fiasco shows how important it is for banks to proactively contact people who have been affected by their mistakes.  Up to £5 billion pound of PPI compensation has gone to claims firms because these companies were able to swoop in and act as a go-between.”