What to expect from Tesco bank over PPI issues
Find out how Tesco Bank has dealt with the PPI issues and what it means for customers.
08:17 14 May 2013
Tesco Bank recently increased the amount of money it has set aside to give back to customers who didn’t qualify to receive PPI(Payment Protection Insurance) benefits, or who were missold PPI. They proactively made the change based up on the number of contacts they have had from customers who were affected.
Pros for Tesco Bank’s actions:
- Reputation—their separation from RBS is complete and their handling of the PPI issues may help improve their reputation as a banking entity.
- Customers—customers dealing with Tesco Bank will be assured of swift correction of any issues brought to their attention.
- Security—Tesco Bank decided to cut costs in other departments to ensure that their customers would be able to receive the proper amounts back.
Cons for Tesco Bank’s actions:
- Growth—the bank’s growth may be limited as some banking customers may feel a little bit apprehensive to use the insurance products offered by the bank.
- Liability—with the separation from RBS Tesco Bank will be completely on its own for managing finances and will hold sole responsibility for banking practices in the future.
- Finances—cash resources may be temporarily limited while repaying the necessary amounts for PPI.
What can customers expect as a result of Tesco Bank’s actions?
- Attention—between the PPI issues and the separation from RBS, Tesco Bank will most likely be paying very close attention to the banking practices to ensure its compliance.
- Security—Tesco Bank will also likely focus on financial security for their customers to encourage customer trust.
- Customer service—the bank has also proven by its handling of the current PPI issue that it will quickly resolve any issues and will willingly address customer complaints, putting customer needs first.
PPI has caused quite a bit of change within the banking industry and the attitude of the various banks involved will be a testament to how customers will be treated in the future.