‘Different rates’ of compensation paid for PPI

Serious questions have emerged surrounding the robustness of the Central Bank’s investigation into payment protection insurance after it emerged that the banks were allowed to set their own rates of compensatory interest.

Banks and insurance companies have been forced to pay out more than €67m in compensation in relation to Payment Protection Insurance (PPI), according to the Central Bank.

However, the regulator said that there are different rates of compensation being paid out by the financial institutions who were involved in the review.