The FCA has confirmed that they are investigating two Banks for mis-handling PPI Claims. This comes after a report last week that the Financial Ombudsman (FOS) has seen an increase of PPI complaints being filed with them.

PPI complaints that are rejected by Banks are typically sent to the FOS for review. Our review of this last week pointed out that the FOS found that 8 out of 10 PPI complaints were upheld by the FOS. This has lead to the FCA stepping in to investigate the two main Banks that are rejecting valid PPI claims from customers.

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)

Two banks face fines for PPI rejections

Two banks face fines for fobbing off an “outrageous” proportion of PPI complaints, the head of the City regulator disclosed today. Martin Wheatley, chief executive of the Financial Conduct Authority, said the number of legitimate payment protection insurance (PPI) cases rejected by banks was “absolutely not accetable”.
He told the a committee of MPs that the watchdog “will take more enforcement actions” to combat complaint mis-handling. Such action typically results in a fine. He said two “large” investigations are under way, but did not name the banks in question. 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.

However, the Financial Ombudsman Service, which takes on complaints rejected by banks, has reported a huge rise in the number of complaints wrongly rejected by banks. It received a total of 266,228 new PPI cases in the first half of the year – a 26pc increase on the figure for the previous six months The Ombudsman upheld more than eight in ten complaints made against some institutions, the data showed, showing that banks routinely fob off legitimate cases.
Mr Wheatley called these figures “outrageous” and referred to strong action already taken against Lloyds Banking Group, which was fined £4.3m in February for delaying PPI compensation to 140,000 customers. Further fines against two institutions are now expected. Lloyds appears to be struggling under the weight of complaints. The Ombudsman was deluged with cases against Halifax Bank of Scotland, the state-backed bank owned by Lloyds Banking Group, throughout the first half of 2013.

In total, the bank 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. An investigation by The Times newspaper, published in June, exposed Lloyds for failures in its PPI complaints handling. Mr Wheatley said that it “had not gone unnoticed”.

In defence, Martin Dodd, head of customer services at Lloyds Banking Group, has 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.”

Article Source : http://www.telegraph.co.uk/finance/personalfinance


PPI Claims: News & Information

Banks rejecting legitimate PPI Complaints

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.

Read More


PPI Complaints still rising for the Financial Ombudsman

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, The FOS was recieving upwards of 2,000 PPI complaints per day in July

Read More


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.

Read More


PPI Claims Service

Maple Leaf Financial will work with you to ensure that you get the correct settlement or refund and any and all fair compensation that may be due to you as a result of PPI mis-selling.

We will deal directly with your PPI provider, be it a bank or insurance company and neither we nor our specialist claims team will be fobbed off by them at any stage. If their offer is too low or derogatory and they won’t take us seriously we will challenge them on your behalf.

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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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Tim Capper

Bringing you financial news and information in plain english for Maple Leaf Financial. My aim is to help readers understand these often complex financial instruments.