Banks found to have underpaid PPI claims

Compensation claims for mis-sold credit card PPI have been estimated to be underpaid by around £1bn according to a BBC investigation.

Whilst the banks have refunded premiums plus interest, it is claimed they have not refunded additional charges triggered by the mis-sold PPI.

Customer potentially affected had PPI on credit cards issued by Barclays, Capital One, Lloyds Banking Group and MBNA.

The banks are reviewing their methodologies in redressing the clients affected.