Archive for October, 2014

Fund to Pay Barclays PPI Refund Compensation Tops £5 Billion

Posted on: October 30th, 2014

The fund to pay Barclays PPI refund compensation have been increased to more than £5 billion following a £170 million addition to the fund in the last quarter.

The third quarter “Interim Management Statement” reveals that between July and September the company set aside a further £170 million for pay Barclays PPI refund compensation. The extra provision bring Barclays´ total fund up to £5.02 billion following a £900 million provision during the second quarter of the year.

The report also reveals that the company paid out £291 million in Barclays PPI refund compensation during the third quarter of the year.  A comment alongside this figure in the report indicates that the bank is expecting a decrease in the number of customers claiming Barclays PPI refund compensation throughout the remainder of the year – which will also result in a reduction in handling costs.

Observers have noted a significant discrepancy between the £5.02 billion put aside to pay Barclays PPI refund compensation and the amount paid to date (£3.8 billion since January 2011). It would appear that there is more than £1.2 billion still available for customers to claim Barclays PPI refund compensation, and there are two possible explanations for this discrepancy:

The Financial Conduct Authority registered 278,426 complaints about Barclays during the first six months of the year – more complaints than for any other credit provider. 70% of the complaints related to Barclays PPI refund compensation – either because claims handlers at Barclays had unjustifiably rejected customers´ claims, or had underpaid settlements of PPI compensation.

There is also a significant number of complaints waiting to be investigated by the Financial Ombudsman Service about the way in which the bank has handled Barclays PPI refund compensation claims. Barclays was recently identified as one of four credit providers deliberately miscalculating PPI refunds by deliberating overlooking charges triggered by PPI premiums – in some cases reducing the amount of compensation due to customers by 50%.

Compensation for Zebra Crossing Injuries Settled Out of Court after Negotiated Agreement

Posted on: October 6th, 2014

A claim for compensation for zebra crossing injuries has been settled out of court after the negligent party´s insurance company agreed to settle the claim in full.

In December 2011, Janet Churchley was crossing Carr Lane in Hull city centre when she was hit by a car whose driver had been distracted on the approach to the zebra crossing she had just stepped onto. The impact of the car broke Janet´s leg and, due to the way in which Janet fell, her arm was also broken in the accident.

Paramedics treated Janet with gas and air at the scene of the accident before she was taken to the Royal Hull Infirmary by ambulance. There Janet underwent surgery to ensure that her broken bones would knit back together properly and she was subsequently confined to a wheel chair for three months.

While she was recovering from her injuries, Janet was totally dependent on her husband for washing and dressing and carrying out daily chores. Janet attended her son´s wedding while still in the wheelchair and had to sleep downstairs on her sofa because it was the only way she could sleep comfortably with her leg outstretched.

Janet was unable to return to work for almost a year and, when she did so, found that she was only capable of working part-time. She also found that psychological scars from the accident manifested in anxiety whenever she had to cross a road and – after seeking legal advice – Janet claimed compensation for her zebra crossing injuries.

Although the driver of the car which hit Janet acknowledged that he had been distracted on the approach to the zebra crossing, his insurance company failed to agree to how much was being claimed for Janet´s loss of income. An interim settlement of compensation for zebra compensation injuries was arranged in order that Janet would not be out of pocket and after protracted negotiations the insurance company settled Janet´s claim for an undisclosed amount – believed to be in the high five figures.