Review shows €67m refunded to Payment Protection Insurance customersThursday 06 March 2014 23.42
Over €67m has been refunded to around 77,000 consumers who were sold Payment Protection Insurance by 11 credit institutions since July 2007.
The figures are contained in a Central Bank report on a review it carried out into the sale of PPIs.
The average payment was around €870, but there were wide variances in the amounts paid as some related to mortgages and others to credit cards and less costly products.
Refunds were granted in the case of over 20% of the policies sold by the institutions in the period under review.
Refunds were paid where people were found not to have been eligible to benefit from the product they were sold or where the product was not suitable for the policyholder.
Payments were also made when the institution could not demonstrate that it had complied with the Consumer Protection Code.
The Central Bank said that around 6,000 consumers had not responded to letters notifying them that they were entitled to a refund.
The Bank said that in 5,000 of those cases, the amount to be refunded was in excess of €100.
Bernard Sheridan, Head of Consumer Protection with the Central Bank said the Bank was satisfied with the level of cooperation it had received from the institutions under review.
However, he didn't rule out enforcement action against institutions that did not take part in the review, but are found to have not complied with the code.
He also declined to rule out further reviews into other products that may have been sold in contravention of the Consumer Protection Code.