According to This is Money, a number of insurance companies are refusing to comply with the rules in relation to payment protection insurance that were introduced by the UK Financial Services Authority in March 2007.
The guidelines were implemented by the regulator to ensure customers are treated fairly when they cancel their payment protection insurance (PPI) policy, which usually covers credit card, loans and mortgage repayments if the policyholder is unable to meet the payments due to an accident, sickness or unemployment, and receive a reasonable refund.
However, This is Money, has discovered that refunds for UK PPI customers generally fall below the expected payment amount.
According to the news site, complaints over low refunds on cancelled PPI policies are at a high level compared to other complaints in relation to the controversial product.
This is Money also revealed that UK high street banking giant Barclays failed to comply with the recently enforced PPI regulations, having offered a customer a far lower refund than expected. Furthermore, Barclays has reportedly refused to make any alterations to the refund or explain how the offer was calculated.