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)
This backs up the theory that only around 1 in 10 people have actually made a PPI claim based on their mis-sold policy. With figures like these, we can expect to see PPI complaints rising for a while longer.
PPI dominates customer complaints to ombudsman
Some 86% of all new complaints made to the UK’s financial ombudsman in the first half of the year were about PPI mis-selling – a record high.
The fallout from the UK’s biggest financial mis-selling scandal showed no signs of slowing, with 266,228 complaints made in the period.
These cases end up with the ombudsman if there is no agreement between a bank and its customer.
Some customers were facing “unnecessary delays” in receiving payouts, it said.
PPI – or payment protection insurance – policies are supposed to repay people’s loans if their income drops because they fall ill or lose their jobs.
Some people have benefited from the policies, but many were unaware they were even paying for it. Others did not need it or would have been unable to make a claim.
Thousands of people have already been compensated after being mis-sold the policies, and now a huge industry has built up around sorting all the claims that can be made.
There was a 26% rise in the number of PPI complaints to the ombudsman in the first half of the year compared with the previous six months.
The UK’s High Street banks have set aside more than £18.6bn to cover the costs of PPI mis-selling, according to consumer group Which?.
However, the financial ombudsman has accused some banks of taking too much time over dealing with customers’ PPI claims.
“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,” said Natalie Ceeney, the chief ombudsman.
“But, more positively, we are seeing encouraging signs from some major businesses that are starting to recognise the value of getting things right for their customers – with an increased focus on sorting out problems and concerns as quickly as possible.”
There were wide differences in the proportion of complaints that were considered to be justified by the financial ombudsman.
It found in favour of the customer in just 7% of PPI complaints from customers of the Nationwide building society, deciding in many other cases that the policy was not mis-sold.
In contrast, some 90% of customers’ PPI complaints about Lloyds TSB were upheld by the ombudsman.
Lloyds Banking Group’s customer service director, Martin Dodd, said: “The group continues to proactively manage the issue of PPI complaints in order that customers can receive redress if they have been mis-sold.
“This is an ongoing process and we will continue to review all claims in an in-depth manner that produces fair outcomes for customers.”
He said that the bank had fewer PPI complaints in the first half of the year than during the same period a year earlier, and PPI now represented a smaller proportion of total complaints than previously.
BBC Article: http://www.bbc.co.uk/news
PPI Mis-Selling Complaints: News & Information
PPI Compensation payments boosting the economy
The Office of National Statistics has released figures suggestiong that the £10 billion in PPI compensation payments that have been made is boosting the economy.
This is nothing new in March we published an article where an analysis by Which? showed that UK consumers paid out £50 billion for PPI protection since 1996. The article also highlighted some other PPI statistics provided by the ONS
Payment Protection Insurance (PPI) Explained
Payment Protection Insurance (PPI) has played an interesting role in the world of finance over the past several years. This insurance product is intended to protect both the borrower and the lender in the event that the borrower becomes unable to make loan payments, but the product is often misunderstood. Furthermore, while the product is intended to provide a valuable safeguard, it was often abused and led to significant regulatory reforms as well as lawsuits with damages reaching well into the billions. Given the ongoing prevalence of this type of product, consumers will be benefited from understanding PPI, what is does and how it can be abused.
PPI Claims Service – Midlands, 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. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
We will work with you to ensure that you get the correct PPI 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.
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
Latest posts by Tim Capper (see all)
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- FCA updates PPI redress for 2.5 million old PPI complaints - October 27, 2014