News today is that do it yourself PPI Claims (DIY PPI Claims) could take upto 4 years to be processed. The Financial Ombudsman is swamped with financial claims, including PPI Claims that it may take up to 4 years to complete. Initial reports are all stating that the deluge of PPI Claims is to blame and are blaming PPI Claims companies. But they fail to mention Mis-sold mortgages where people lost their homes and lets not mention Mis-sold swaps where businesses were closed from unscrupulous banking practices.
Three stories have appeared in the last couple of hours (This is Money, The Independant, The Guardian) centred on the fact that a PPI claim, financial complaint can now take upto 4 years to complete if filed with the Financial Ombudsman.
The financial ombudsman has been swamped with PPI compensation claims and these are backing up the system. The financial Ombudsman also has to deal with other forms of complaints, from banking disputes, to the recent swap claims, even the RBS computer meltdown has created new cases to deal with.
In all three stories I have seen the term ‘frivoulous complaints’ and there should be a charges added to file a PPI complaint.
Hang on a second, lets take a step back !
The public did not ask to be duped, mis-sold PPI or any other product. The banks had their day in court, they fought this tooth and nail and they lost. Hundreds of thousands of people were mis-sold PPI, the very nature of the mis-selling was because the banks did not disclose the product, hid it completely or did not fully explain the terms. Now these people are entitled to file a PPI claim, by law, they are the victims and you brand them frivolous !
The next part of the stories are about PPI Claims Companies and rogue claims.
To set the record straight, PPI Claims companies do not file their complaints with the financial ombudsman, so blaming PPI Claims Companies for the backlog in PPI Claims or rather ‘swamping’ the system is absurd. PPI claims companies will file a claim to the bank or financial institution responsable for the mis-sold product.
The next act involves PPI claims companies filing non existant claims with banks. Apparently there are rogue claims companies cold calling on the elderly saying they can win compensation, then take an upfront fee and filing a bogus claim that they know will be rejected.
If this does happen, it is terrible and abhorrent. However is it right to be labeling these as PPI claims companies. PPI claims companies or any other claims management company has to be registered with the Ministry of Justice. There have been a few claims companies that have been struck off, but cold calling and targeting the elderly, does not sound like a ‘registered’ companies tactics.
If you are approached at the door by a ‘PPI claim company’, check they are registered with the Ministery of Justice. Do not ever pay a handling, upfront fee and understand what percentage fee that they will charge.
The Building Society Association says there were 22,441 people who were mislead in making a claim.
Lets see how bad PPI claims really are!
These are from the Financial Services Authority latest Figures.
Total overall number of complaints increased by 21% to 2,256,172 in 2011 The main driver for this increase was a rise in the volume of complaints about ‘general insurance and pure protection’ which increased by 49% to 1,280,940 . Most notably within this product group were the number of complaints about payment protection insurance (PPI) which rose by 85% to 977,510
So actually PPI Claims companies are not the big bad ogres really.
Yes PPI claims are being filed and Yes they are increasing, but does 22,441 out of 977,510 complaints equate to some mass fraudulent outbreak, its less then 3% of total PPI Claim.
Also to put the Building Society Associations 22,441 bogus claims into perspective.
Every year approximatly 3.2 million fall victim to bogus scams every year, £3.5 billion lost every year” – Office Of Fair Trading Statistics
What these three stories fail to mention is that in some Mis-sold financial products, people lost their homes from Mis-sold mortgages, and in the recent swap mis-selling, businesses were forced to close.
Banks made billions of Pounds out of duping their loyal customers, please do not feel any sympathy for these institutions. If you feel that you have a legitimate claim, then by all means file your complaint. If you do use a PPI claims company, then check their credentials (like you never did with your Bank, because you trusted them ) find out the exact percentage of fees.
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)
- PPI Claims Currently Show No Sign of Slowing Down - December 10, 2014
- Swaps (IRHP) Determining the Level of Redress - November 3, 2014
- FCA updates PPI redress for 2.5 million old PPI complaints - October 27, 2014