Banks in the UK are set to be charges an extra £400m in fees by the Financial Ombudsman service (FOS) for dealing with PPI complaints. The FOS charges a standard fee of £550,00 per complaint regardless of whether the complaint is upheld against the financial insitution or not.
In April 2012 a supplemental fee was also introduced for PPI complaints to help deal with the addittional costs associated with PPI complaints, given the sharp increse in complaints being recieved which currently averages at around 1500,00 per day.
Banks to pay £400m in fees to ombudsman over PPI complaints
The four major UK banking groups – Barclays, HSBC, Lloyds and RBS – are anticipated to pay over £370 million in fees to the FOS for PPI complaints received since 2011. While data is not available for complaints received against individual banks from 2009, the industry as a whole is also expected to have incurred charges of around £92 million for PPI handling between 2009 and 2011.
Over 190,000 PPI complaints were received by the FOS against the four biggest financial institutions in the first six months of this year. Consumers have the option of complaining through the FOS once they have contacted their bank directly.
“After eight weeks, if they have not heard anything back from the bank then we can look at the complaint,” says a spokesperson for the FOS. “Or else, if they have heard back from the bank and have had a final decision on their complaint but they’re not happy with that, then they can bring their complaint to us.”
An average of 65% of PPI complaints received by the FOS in the year to March 31, 2013 were upheld. Barclays Bank and Lloyds TSB Bank are among institutions above this industry average. 74% of PPI complaints received against Barclays Bank and 90% against Lloyds TSB Bank from January 1 to June 30, 2013 were upheld, for example.
A spokesperson for the British Bankers’ Association, an industry lobbying group, says a backlog at the FOS means uphold figures will continue to remain high.
“These numbers are quite high now and probably will continue to be high for a little while, but will start to fall. You’re basically looking at cases that are up to two years old,” he says.
When asked why banks are rejecting thousands of complaints that are actually found by the FOS to be in the favour of the consumer, a spokesperson for Lloyds said: “We are seeing that the ombudsman now agrees with more of our decisions in PPI cases than they have done previously.” (The rate of overturns for Lloyds’ subsidiary, Lloyds TSB Bank, hit 90% in the first half of 2013; in 2012 it was 98% in the first half and 86% in the second half of the year.)
He continued: “The reason for the overturn on the vast majority of these cases is because the bank, rather than the ombudsman, has instigated the change in decision following a further review of the case.”
A spokesperson for Barclays says: “Regarding FOS cases our overturn rate has reduced significantly to below the industry average.”
RBS, meanwhile, says: “We are now working hard to compensate customers who were mis-sold these products in the past. We started writing to customers in September 2012 and will continue throughout 2013.”
HSBC declined to comment.
Financial institutions have so far paid out £11.5 billion in compensation to customers who have complained about the way they were sold PPI, with this figure only expected to rise.
PPI Complaints News
PPI Claims On Your Barclaycard: How to Claim & FAQ’s
Understand how to make a claim on PPI, otherwise known as Payment Protection Insurance and the process involved should you wish to reclaim PPI on your Barclaycard.
Maple Leaf Financial has over 10yrs experience in dealing with PPI claims. If you have any problems making a PPI Claim on your Barclaycard, we are here to assist you. We include information below on :
How Much do PPI Claims Companies Charge?
Maple Leaf Financial has been dealing with financial claims for over 10 yrs and yes we also deal with PPI claims. However we have never made a cold call, TV advert or Online ad.
We deal with YOU and not the sole purpose of running a Claim. We also look at conequential loss and compound interest that may be owed to you, something th “fly by night” PPI Claims Companies do not do, as this takes a working legal Knoweledge.
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.
PPI Claims – Leicester, 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 in Leicester. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
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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