People who take out a joint financial product with their partner could be eligible for PPI compensation, but may be named second on the policy and won’t know if their former partner ever makes a claim which disproportionately affects women, many of whom may be due thousands.
This unfortunate Payment Protection Insurance loophole put in place by the banks could see divorced women miss out on £3.4 billion every year from unclaimed compensation.
In 2016, NatWest and Royal Bank of Scotland refunded thousands of divorced women who lost out after RBS-Natwest issued the full PPI payouts on joint financial products to their former partners. This issue was only rectified when PPI experts brought the error to the attention of the bank.
Banks are now obliged to half a PPI refund for joint accounts in reserve, but aren’t obliged to tell the other partner, leaving billions sitting unclaimed.
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Source: Your Money