The recent increase in PPI complaints being recieved by the FOS is a direct results of Banks rejecting increasing numbers of legitimate PPI complaints being sent to them. The FOS has upheld 8 out of 10 PPI complaints forwarded to them.
This 80% of upheld complaints by the FOS highlights how the Banks are increasingly rejecting valid PPI complaints being made by customers.
A record 86% of all complaints made to the Financial Ombudsman service is about PPI mis-selling. In the first half of the year a reported 266,228 PPI complaints for mis-selling have been lodged.
PPI complaints show no sign of slowing down. We have recently reported that Barclays was recieving an estimated 1,500 PPI complaints per day ( see article ), The FOS was recieving upwards of 2,000 PPI complaints per day in July (see article)
Banks fob off ‘shocking’ tally of PPI complaints
Banks rejected a “shockingly high” number of legitimate complaints about mis-sold payment protection insurance (PPI) in the first half of this year, new figures indicate. A total of 266,228 claims for PPI mis-selling were referred to the independent Financial Ombudsman Service, which settles disputes between banks and customers. This marked a 26pc increase on the figure for the previous six months.
Each complaint was one which a bank either rejected or failed to resolve. The Ombudsman upheld more than eight in ten complaints made against some institutions, the data showed. Experts said the figures indicated thousands of complainants were being unjustly fobbed off every month. Natalie Ceeney, chief ombudsman, said: “Disappointingly we are still seeing cases where businesses are not following our long-standing approach to PPI, resulting in long waits and unnecessary delays for consumers.”
PPI was an insurance sold alongside loans and credit cards. Many customers have only later discovered they did not need the cover, or would have been unable to claim on it. Banks have been ordered to pay back premiums to anyone mis-sold and have put aside more than £18bn for compensation – double the cost of the Olympic games.
The Ombudsman told The Telegraph there was of flood of PPI complaints against Halifax Bank of Scotland, the state-backed bank owned by Lloyds Banking Group. In total, it accounted for 61,664 complaints – a 57pc increase on the previous six month period. A total of 80pc were upheld in the customer’s favour.
The same story played out at sister bank Lloyds TSB, with the Ombusdman recording a 31pc rise in complaints. The bank was found at fault in 86pc of cases. Richard Lloyds, chief executive of consumer group Which?, said: “The shockingly high uphold rates on PPI claims exposes just how shoddy the complaints handling is at some of the major high street banks. “Despite their claims, banks are failing to clean up their act. The Financial Conduct Authority [the city regulator] must ensure all banks are handling complaints to a much higher standard, so that it’s easier for people with legitimate claims to get back what they’re rightly owed. There must be tough action against any bank found dragging its feet.”
The sudden jump in complaints against Lloyds arrived just before an investigation by The Times newspaper, published in June, exposed Lloyds for failures in its PPI complaints handling.
At the time, Martin Lewis, founder of website MoneySavingExpert, urged customers who have had their PPI compensation claims turned down by the bank to take their complaint to the free Ombudsman or resubmit their grievance to the bank. Mr Lewis said: “If Lloyds have turned you down, you need to fight if you feel you have been mis-sold, certainly ignore a Lloyds rejection.”
The Ombudsman’s complaints figures for the six months between January and June, released today, suggest many customers had already started on this path. Lloyds has since terminated its contract with Deloitte, which was overseeing the complaint handling. A spokesman said the comments about systematically turning away complaints, made by staff to undercover reporters, were “not endorsed” by the bank. Lloyds was fined £4.3m in February by the Financial Services Authority for delaying PPI compensation to 140,000 customers.
The surge in PPI rejections pushed the total number of complaints about financial firms up 15pc to 327,035 between January and June – a new record. Excluding PPI, complaints dropped 15pc to 60,807 on the prior six months, including a 22pc fall in banking complaints.
Lloyds released separate figures showing complaints it received fell 36pc to 548,403 in the first half on a year earlier – including a 39pc drop in PPI complaints. Barclays was the second-most complained about group, with 44,223 cases lodged with the ombudsman, up 81pc on a year earlier. It was followed by Royal Bank of Scotland, responsible for 22,940 complaints to the FOS, and HSBC, which saw 18,444 complaints lodged with the regulator.
Martin Dodd, head of customer services at Lloyds Banking Group, said: “The commitment to do a better job for our customers is focused on delivering outstanding customer service. Over the last three years we’ve seen a considerable drop in the number of complaints we receive, to a point where, on a like for like basis, our brands now receive fewer banking complaints than any other major bank.”
He added that the will continue to review all PPI claims in an “in-depth manner that produces fair outcomes for customers”.
Original Article : http://www.telegraph.co.uk/finance
Payment Protection Insurance (PPI) News
Barclays PPI Complaints: 1,500 Per Day and Rising
Years after the controversial financial instruments have ceased being issued, PPI complaints are still flooding into the Financial Ombudsman Service each and every day, and current and former Barclays customers are leading the charge. In fact, the latest report states that the large financial institution receives more than 1,500 complaints every single day.
PPI Claims – Leicester, UK
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of payment protection Insurance (PPI) products by the banks in Leicester. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
Interest Rate Swaps: RBS exposed to new swap mis-selling
Investec reports that RBS is likely to be the next bank exposed to interest rate swap claims from mis-selling and should be putting extra provisions aside for likely calls for swap compesation.
After the FCA set up the interest rate swap rate redress scheme with the banking sector, only 10 claims have been compensated so date.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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