Banks are improving the speed at which they settle claims over mis-sold Payment Protection Insurance (PPI) – but are dragging their feet when it comes to paying up, it is claimed. There has been a boom in complaints against banks since the High Court ruled they must compensate customers who had been mis-sold PPI policies in April this year.

While banks – which were overwhelmed by the number of complaints – have started to cut the time it takes for complaints to be settled, the delay between a settlement being agreed and customers receiving their refunds is growing.

Many banks and credit card providers had effectively put all PPI refunds on hold pending the decision of the High Court as to whether or not customers should be able to claim refunds for cases where policies were mis-sold dating back years. When the court ruled in customers’ favour in April, thousands more people lodged complaints, overwhelming banks trying to deal with the backlog of existing claims.

While many expected the spike in complaints after the High Court ruling to be short-lived, the number of claims still being made six months later has taken some banks by surprise. The Financial Services Authority originally ordered six major banks to settle any claims received before the High Court ruling in April by August 31, 2011.

It set out further rules for how long other cases should take. All cases received before the end of August have to be dealt with within 16 weeks; those received between September 1 and New Year must be dealt with in 12 weeks; while any received after January 1, 2012, must be settled within eight weeks of being received.

Sally Bowyer, Managing Director of leading financial claims firm Brunel Franklin, said that consumers could recoup many years’ worth of premiums plus interest. “If you were mis-sold PPI, you may be entitled to several years’ premiums plus 8% interest, which can in some cases amount to several thousands of pounds.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.