Thursday, October 03 11:40:50
To date, eleven banks operating in Ireland have refunded a total of E25m to customers mis-sold payment protection insurance (PPI), according to an update from the Central Bank.
The 11 firms are Allied Irish Banks, Bank of Ireland, Bank of Scotland, Danske Bank, EBS, GE Money, KBC Bank Ireland, MBNA, Permanenttsb, RaboDirect Bank Ireland and Ulster Bank.
These are in the process of reviewing and, where appropriate, offering a refund to their customers where the PPI sale is found to be in breach of the Consumer Protection Code (the Code) since July 2007.
Director of Consumer Protection, Bernard Sheridan said: "Consumers must be confident that all regulated firms are selling suitable financial products in compliance with the Central Bank's Code. Following our initial investigation, we have required firms to undertake a review of PPI sales since July 2007, overseen by independent third parties, to write to all affected customers, and to offer a refund or retention of their PPI policy In case of refund, premiums paid plus interest. In case of retention, this can only occur following a suitability assessment by the firm where the sale failed to comply with the Code."
There were approximately 350,000 policies sold since July 2007 included in the review and, to date, over half of these have been reviewed by the firms, of which approximately one in five have been found to breach the Code's requirements.
To date approximately E25 million has been identified for refund to those consumers whose files have already been reviewed. The Central Bank will continue to monitor the firms to ensure that their reviews have been completed by the end of 2013 and to our satisfaction, it said.
"The aim of this Review is to provide a straight-forward mechanism for the consumer to be redressed where policies were sold in breach of the Code, without any cost to the consumer. The Review should eliminate the need for consumers who were sold PPI by the firms above since 1 July 2007 to engage third parties or go through a legal process. All consumers with policies that fall within the scope of the review will be contacted by their firm by the end of 2013. Consumers who are not happy with the outcome of the firm's review or who are unhappy with any element of the sale of their PPI policy should contact their firm directly," the regulator added.