Over the past month there have been increasing stories in the press and online with Headlines like :
PPI Claims Swamping the System
PPI Claims Swamping Banks
Financial Ombudsman Swamped by PPI Claims
When these stories developed we published our own article responding to these stories :
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.
PPI Claims Figures
Here is an Info graphic that shows how these figures just don’t add up to “Swamping”
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.
PPI Claims News
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.
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
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 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 :
The Financial Ombudsman Service (FOS) has been buried by more than 600,000 complaints about PPI since 2000. Nearly half of those complaints have been filed since July1, 2012. Between that July date and the end of December in 2012, 283,251 complaints have been filed with the ombudsman. That was an increase of 110 percent over the previous six months.
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.
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
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- FCA updates PPI redress for 2.5 million old PPI complaints - October 27, 2014