Legal judgments have ruled that customers can claim back 100% of the cost of PPI because the commission levels were unfair.
But claimants who want to get this money back must make an Access to Data Request to find out how much undisclosed commission was levied as a first step in making a claim.
It often takes months to respond to requests as the banks are accused of deliberately sitting on a huge backlog of DSARs.
A letter to the banks from MPs on the All-Party Parliamentary Group on Fair Business Banking said such delays could breach the laws relating to DSARs.
He said: “There is a real concern that some banks may be deliberately delaying their responses to booked and blocked claims.”
It is estimated that such a claim could cost banks £18billion in compensation, on top of around £40billion paid out to date.
William Wragg MP, co-chair of the APPG on Fair Business Banking, said: “If it turns out that the banks are acting as a block to due process of law it would be a concern for us all.
“Whether the claim relates to PPI, swap mis-selling or any other matter, the legal process cannot be blocked or delayed in any way.”
The fresh wave of PPI claims comes after it emerged that for up to a decade banks and credit card companies charged their customers commissions of up to 95%.
Law firm Harcus Parker last month launched a class action legal claim aimed at helping millions of PPI customers.
Over 350,000 people have already signed up.
Damon Parker, senior partner, said: “The banks are playing fast and loose with the law. In many cases they require or request that customers do DSARs before sending their claims.
“Then they sit on the applications, for months, even years. It is an appalling abuse of the system and the rights of individuals.”
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