Barclays, HSBC, Lloyds and Royal Bank of Scotland are now fighting to clear a backlog of complaints, the Financial Mail reports, with just ten days to go.
In particular, many customers will not know exactly how much compensation they are being offered, or see any sign of the money.
HSBC says it will send out decision letters ahead of the deadline, but customers might not receive their offers of compensation until four weeks later.
Lloyds says it is on track to provide ‘a clear response’ to each customer ahead of the deadline. However, only some will get an offer of compensation at the same time, with others facing a wait to establish what the bank is willing to pay.
RBS says customers will get a decision and an ‘indication of the figure we will pay’.
Compensation will include a refund of premiums, plus backdated interest at 8%. Where the cost of PPI was added to a loan, there will also be compensation for the extra interest a customer had to pay.
Barclays has decided not to investigate fully all claims, but is checking only that someone was a customer and had PPI with the bank before it pays out as a ‘goodwill gesture’, the Mail reports.
The bank says it is on target for all customers to receive offer letters and detailed calculations of what it will pay by the end of this month. Cheques will follow within four weeks.
But on new claims, Barclays says it too will split the decision on whether someone has a valid claim from the calculation of how much redress is due. The bank says all customers will get a yes or no within the watchdog’s 16-week target, but calculations of compensation will follow later.
Some customers who took their cases to the Financial Ombudsman Service may also not have claims settled on time, according to the paper. More than 87,000 were on hold with the FOS pending the outcome of the recent court battle.
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