Millions of borrowers could see their current claims for compensation frozen if the
banks demand a judicial review into the rules.
PPI Mis Selling Review
Banks are preparing to fight rules introduced by the Financial Services Authority (FSA) that would force them to compensate customers mis-sold payment protection insurance.
Millions of borrowers could see their current claims for compensation frozen if the banks demand a judicial review into the rules, which need to be implemented by all PPI providers before December 1.
The high street banks, including state-controlled Royal Bank of Scotland and Lloyds Banking Group, are thought to be considering a move in the next fortnight, issuing a “pre-action” notice to the FSA requesting that it introduce a freeze on all PPI complaints being investigated by providers.
The FSA announced a package of measures last month to improve the way banks handle complaints and
High street banks to fight mis-selling rules. prevent mis-selling. The banks are thought to be particularly concerned about a clause re- quiring them to apply the rules retrospectively to all cases, potentially costing up to £2.7 billion.
The City regulator has been hugely critical of the banks over the mis-selling of PPI and handling of complaints. It estimates the industry will deal with about 550,000 complaints a year for the next five years.
Those who were mis-sold single-premium policies could claim back as much as £1,800.
PPI policies were sold alongside loans and credit cards to cover the cost of debt repayments should the holder become ill or unemployed. However, policies were widely mis-sold to borrowers who could not qualify for a payout.
It is the single product most complained about to the Financial Ombudsman Service, which has handled 114,478 cases in five years, more than half of which have been received in the past 16 months.
The ombudsman finds for the customer in 90% of cases.
The British Bankers’ Association, the trade body, is thought to be hosting meetings between the banks about how to block the new rules. It refused to comment but has not denied that such meetings were taking place. The FSA and the banks concerned have also declined to comment.
A move by the banks to halt complaints while a judicial review is carried out would be a blow to borrowers who were mis-sold PPI in recent years.
Lucy Widenka of Which?, the consumer group, said: “We believe that anyone who was mis-sold PPI is entitled to fair redress, no matter when it was sold.”
The rules announced by the FSA last month are the result of a lengthy consultation on how to clean up the industry’s response to PPI complaints. It has run alongside efforts by the Competition Commission to improve the way that PPI is sold, banning lenders from selling policies for seven days after a new credit card or loan has been approved.
In July, Lloyds Banking Group, Britain’s biggest savings and loans provider, confirmed that it would nolonger sell PPI, in part as a response to the crackdown by regulators.
PPI Claims News
Can I claim PPI on Barclaycard?
If you purchased payment protection insurance (PPI) with your Barclaycard, then you may be able to make a claim against the company. The PPI scandal has rocked the nation and resulted in huge numbers of PPI claims involving the UK’s largest financial institutions. Customers who were victims of mis-selling have a right to file a claim for monetary compensation.
PPI Claims for Alliance & Leicester
Although Alliance & Leicester has been ordered to send notices to customers who have been mis-sold PPI, the real number of customers the bank mis-sold PPI to by far surpasses those who have actually received notices. If you are uncertain whether you have PPI from Alliance & Leicester, check through all of the paperwork that you were given at the time of taking out the loan, mortgage, credit card account, or other financial agreement. If you find evidence or think you have been mis-sold PPI, read on to find a step-by-step guide on how to claim back your PPI from Alliance & Leicester.
Monthly PPI Claims Payouts for July 2013 is £ 528 m
The Financial Conduct Authority (FCA) released its latest totals on monthly PPI Claim Payouts. July 2013 totals for PPI repayments was £528 million which brings the total of PPI Claims repayments made sine January 2011 to £11.5 billion.
The figures are collected from 26 firms and financial institutions that made up for 96% of all the Payment Protection Insurance complaints from last year.
FCA investigates Two Banks for mis handling PPI Claims
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.
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.
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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